Abstracts

Algorithm that creates productcombinations based on customerdata analysis : An approach with Generalized Linear Modelsand Conditional Probabilities

by Enkhzul Uyanga




Institution: KTH
Department:
Year: 2017
Keywords: E-commerce; Customer data; Generalized linear model; Conditional probability;
Posted: 02/01/2018
Record ID: 2167213
Full text PDF: http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-210176


Abstract

This bachelors thesis is a combined study of applied mathematical statistics and industrial engineering and management implemented to develop an algorithm which creates product combinations based on customer data analysis for eleven AB. Mathematically, generalized linear modelling, combinatorics and conditional probabilities were applied to create sales prediction models, generate potential combinations and calculate the conditional probabilities of the combinations getting purchased. SWOT analysis was used to identify which factors can enhance the sales from an industrial engineering and management perspective. Based on the regression analysis, the study showed that the considered variables, which were sales prices, brands, ratings, purchase countries, purchase months and how new the products are, affected the sales amounts of the products. The algorithm takes a barcode of a product as an input and checks whether if the corresponding product type satisfies the requirements of predicted sales amount and conditional probability. The algorithm then returns a list of possible product combinations that fulfil the recommendations. Detta kandidatexamensarbete r en kombinerad studie av tillmpad matematisk statistik och industriell ekonomisk implementering fr att utveckla en algoritm som skapar produktkombinationer baserad p kunddata analys fr eleven AB. I den matematiska delen tillmpades generaliserade linjra modeller, kombinatorik och betingade sannolikheter fr att skapa prediktionsmodeller fr frsljningsantal, generera potentiella kombinationer och berkna betingade sannolikheter att kombinationerna bli kpta. SWOT-analys anvndes fr att identifiera vilka faktorer som kan ka frsljningen frn ett industriell ekonomiskt perspektiv. Baserat p regressionsanalysen, studien har visat att de betraktade variablerna, som var frsljningspriser, varumrken, frsljningslnder, frsljningsmnader och hur nya produkterna r, pverkade frsljningsantalen p produkterna. Algoritmen tar emot en streckkod av en produkt som inmatning och kontrollerar om den motsvarande produkttypen uppfyller kraven fr predikterad frsljningssumma och betingad sannolikhet. Algoritmen returnerar en lista av alla mjliga kombinationer p produkter som uppfyller rekommendationerna.