Demand forecasting model for time-series pharmaceutical data using shallow and deep neural network model

A new rolling forecasting framework using Microsoft Power BI for data visualization: A case study in a pharmaceutical industry

CONTEXT AND OBJECTIVES

Demand forecasting is a vital step for production planning and consequently, for supply chain efficiency, especially for the pharmaceutical (pharma) supply chain due to its unique characteristics. Numerous models and techniques that are proposed in the literature but little in concrete and generic framework to forecasting process, mainly for pharmaceutical supply chain. Unlike studies in the literature, this study not only perfectly predict the sales of a pharma manufacturer, but also visualize the results via a developed dashboard using modern information technology and business intelligence.

MATERIAL AND METHODS

In this research, a rolling forecasting framework comprising of different steps and specialized tools is proposed that can assist supply chain managers to perform an accurate sales forecasting and consequently a better performance and specifically patient satisfaction. The proposed generic framework combines the use of Visual studio C++ software to extract optimal forecasting and the Power BI software to monitor the accuracy of the obtained sales forecasts. Three exponential smoothing methods are integrated in the proposed framework, which is open to adding more new forecasting methods.

RESULTS

The proposed framework is tested for many data sets from a pharmaceutical manufacturer company, and the results obtained show superior performance, especially a clear decline in both forecast errors, which can reach 75% and a drop of stock level to 50%. Therefore, the company is currently using it and a future integration with their ERP is being carried out.

CONCLUSION

The proposed rolling forecasting framework contributes to insightful decision-making through the visualization of accurate future sales and turnover, and consequently, an efficient stock management and effective production planning.

A Decision Probability Transformation Method Based on the Neural Network

When the Dempster-Shafer evidence theory is applied to the field of information fusion, how to reasonably transform the basic probability assignment (BPA) into probability to improve decision-making efficiency has been a key challenge. To address this challenge, this paper proposes an efficient probability transformation method based on neural network to achieve the transformation from the BPA to the probabilistic decision. First, a neural network is constructed based on the BPA of propositions in the mass function. Next, the average information content and the interval information content are used to quantify the information contained in each proposition subset and combined to construct the weighting function with parameter r. Then, the BPA of the input layer and the bias units are allocated to the proposition subset in each hidden layer according to the weight factors until the probability of each single-element proposition with the variable is output. Finally, the parameter r and the optimal transform results are obtained under the premise of maximizing the probabilistic information content. The proposed method satisfies the consistency of the upper and lower boundaries of each proposition. Extensive examples and a practical application show that, compared with the other methods, the proposed method not only has higher applicability, but also has lower uncertainty regarding the transformation result information.