Using Machine Learning Techniques to Forecast Mehram Company's Sales: A Case Study

Abstract

Sales forecasting, situated at the intersection of art and science, is critical for inspiring managers toward achieving profitable outcomes. Its precision sustains production levels and capital and plays a pivotal role in the company's and its leaders' overall success and career progression. In the context of Mahram Food Industries, the challenge arises from diverse investor perspectives and the impactful nature of numerous variables. To address this, a new sales forecasting algorithm has been introduced to enhance accuracy. The aim is to predict future sales through a comprehensive approach, leveraging technical analysis, time series modeling, machine learning, neural networks, and random forest techniques. The research methodology integrates various advanced techniques to improve sales forecasting for Mahram Food Industries. Technical analysis, time series modeling, machine learning, neural networks, and random forest methods are combined to create a robust framework. The focus is on predicting sales for a future period within the artificial intelligence-based machine learning domain. The study employs metrics such as Mean Absolute Deviation (MAD), MAD Percentage (MADP), and Mean Squared Error (MSE) to evaluate and compare the performance of the proposed neural network against traditional methods like multiple variable regression and time series modeling. The study's results highlight the superior performance of the neural network in sales forecasting for Mahram Food Industries. The Mean Absolute Deviation (MAD) for the neural network is 28.33, outperforming multiple variable regression (28.54) and time series modeling (29.45). Additionally, the neural network demonstrates a better MAD Percentage (MADP) with a value of 10.2%, surpassing the values associated with multiple variable regression (10.35%) and time series modeling (10.30%). The Mean Squared Error (MSE) further confirms the neural network's superiority with a value of 6452 compared to 6472 and 7865 for multiple variable regression and time series modeling, respectively. In conclusion, the study showcases the effectiveness of integrating advanced techniques, particularly the neural network, in enhancing the accuracy of sales forecasting for Mahram Food Industries. The comprehensive approach, combining technical analysis, time series modeling, machine learning, neural networks, and random forest, is a valuable strategy for predicting future sales. The superior performance of the neural network, as evidenced by lower MAD, MADP, and MSE values, suggests its potential for guiding informed decision-making in goal setting, hiring, budgeting, and other critical aspects of business management.