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32 views4 pages

Solution

Uploaded by

kkesarkar5
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Step 1: Identify at least 10 major KPIs that would be useful for the business

Based on the dataset, I have identified the following 10 major KPIs that would be useful for the
business:

 Sales Revenue: Total sales revenue generated by the supermarket chain

 Customer Count: Number of unique customers who have made purchases

 Average Order Value (AOV): Average amount spent by customers in a single transaction

 Customer Retention Rate: Percentage of customers who have made repeat purchases

 Product Category Sales: Sales revenue generated by each product category (e.g. dairy,
bakery, etc.)

 Top-Selling Products: Products that have generated the highest sales revenue

 Region-wise Sales: Sales revenue generated by each region (e.g. Chennai, Coimbatore, etc.)

 State-wise Sales: Sales revenue generated by each state (e.g. Tamil Nadu, Karnataka, etc.)

 Gross Margin: Difference between revenue and cost of goods sold

 Inventory Turnover: Number of times inventory is sold and replaced within a given period

Step 2: Load the dataset and perform Data Preprocessing, Outlier Detection, and Exploratory Data
Analysis

To perform data preprocessing, outlier detection, and exploratory data analysis, I will use Python
with the Pandas and NumPy libraries.

import pandas as pd

import numpy as np

# Load the dataset

df = pd.read_csv('Supermart Grocery Sales - Retail Analytics Dataset.csv')

# Data Preprocessing

# Check for missing values

print(df.isnull().sum())

# Handle missing values (e.g. impute with mean or median)

df.fillna(df.mean(), inplace=True)
# Outlier Detection

# Use the Z-score method to detect outliers

from scipy import stats

z_scores = np.abs(stats.zscore(df))

print(z_scores)

# Exploratory Data Analysis

# Summary statistics

print(df.describe())

# Visualize the data using plots and charts

import matplotlib.pyplot as plt

df.plot(kind='bar')

plt.show()

Output:

 Summary statistics of the dataset

 Bar chart showing the distribution of sales revenue by product category

Step 3: Use Association Rule Mining technique to identify the items frequently bought together
and their demands

To perform association rule mining, I will use the Apriori algorithm implemented in the Python
library mlxtend.

from mlxtend.frequent_patterns import apriori

from mlxtend.frequent_patterns import association_rules

# Convert the dataset to a transactional format

transactions = []

for index, row in df.iterrows():

transactions.append(row['Item Name'])

# Perform association rule mining


frequent_itemsets = apriori(transactions, min_support=0.01, use_colnames=True)

rules = association_rules(frequent_itemsets, metric='confidence', min_threshold=0.5)

# Print the top 10 rules

print(rules.head(10))

Output:

 Top 10 association rules showing the items frequently bought together and their demands

Step 4: Use Classification techniques to develop a model and predict the item categories and sub-
categories that would provide the highest sales and profit region-wise/state-wise

To perform classification, I will use the Scikit-learn library in Python.

from sklearn.model_selection import train_test_split

from sklearn.ensemble import RandomForestClassifier

from sklearn.metrics import accuracy_score, classification_report

# Prepare the dataset for classification

X = df.drop(['Item Category', 'Item Sub-Category'], axis=1)

y = df['Item Category']

# Split the dataset into training and testing sets

X_train, X_test, y_train, y_test = train_test_split(X, y, test_size=0.2, random_state=42)

# Train a random forest classifier

rfc = RandomForestClassifier(n_estimators=100, random_state=42)

rfc.fit(X_train, y_train)

# Make predictions on the testing set

y_pred = rfc.predict(X_test)

# Evaluate the model


print('Accuracy:', accuracy_score(y_test, y_pred))

print('Classification Report:')

print(classification_report(y_test, y_pred))

Output:

 Accuracy and classification report of the random forest classifier

Step 5: Modify the dataset to incorporate the Non-Volatile feature of data warehouse

To modify the dataset to incorporate the Non-Volatile feature of data warehouse, I will create a new
column Version to track changes to the data.

# Create a new column 'Version' to track changes

df['Version'] = 1

# Save the modified dataset to a new CSV file

df.to_csv('Supermart Grocery Sales - Retail Analytics Dataset_Modified

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