Project Title

Supply Chain Management

Tools ML, Python, SQL, Excel

Domain Data Analyst

Project Difficulties level intermediate

Dataset : Dataset is available in the given link. You can download it at your convenience.

Click here to download data set

About Dataset
Supply chain analytics is a valuable part of data-driven decision-making in various industries such as
manufacturing, retail, healthcare, and logistics. It is the process of collecting, analyzing and interpreting
data related to the movement of products and services from suppliers to customers.

Here is a dataset we collected from a Fashion and Beauty startup. The dataset is based on the supply
chain of Makeup products. Below are all the features in the dataset:

● Product Type
● SKU
● Price
● Availability
● Number of products sold
● Revenue generated
 ● Customer demographics
● Stock levels
● Lead times
● Order quantities
● Shipping times
● Shipping carriers
● Shipping costs
● Supplier name
● Location
● Lead time
● Production volumes
● Manufacturing lead time
● Manufacturing costs
● Inspection results
● Defect rates
● Transportation modes
● Routes
● Costs

Supply Chain Management Machine Learning Project

Project Overview

The goal of this project is to implement a machine learning model to optimize

supply chain management. This can involve various tasks such as demand
forecasting, inventory optimization, supplier selection, and transportation
planning. We'll focus on a demand forecasting model, which is a critical
component in supply chain management.

Step 1: Data Preparation

Ensure your dataset includes the following columns:

● Date
● ProductID
 ● HistoricalSales
● Promotion
● Price
● Weather (if applicable)
● EconomicIndicators (if applicable)

Step 2: Data Preprocessing

First, import the necessary libraries and load the dataset.

import pandas as pd
import numpy as np
import matplotlib.pyplot as plt
import seaborn as sns
from sklearn.model_selection import train_test_split
from sklearn.preprocessing import StandardScaler
from sklearn.metrics import mean_squared_error
import tensorflow as tf
from tensorflow import keras
from tensorflow.keras import layers

# Load the dataset

data = pd.read_csv('supply_chain_data.csv')

# Display the first few rows of the dataset

print(data.head())

Data Cleaning and Feature Engineering

# Handle missing values

data = data.dropna()

# Convert date to datetime

data['Date'] = pd.to_datetime(data['Date'])

# Create additional time-based features

data['Month'] = data['Date'].dt.month
data['DayOfWeek'] = data['Date'].dt.dayofweek
data['Quarter'] = data['Date'].dt.quarter

# Drop the original date column

data = data.drop(columns=['Date'])

# One-hot encode categorical variables if any

data = pd.get_dummies(data, columns=['Promotion', 'Weather', 'EconomicIndicators'])

# Define the target variable and features

target = 'HistoricalSales'
features = data.drop(columns=[target])

# Split the data into training and testing sets

X_train, X_test, y_train, y_test = train_test_split(features, data[target], test_size=0.2,
random_state=42)

# Standardize the features

scaler = StandardScaler()
X_train_scaled = scaler.fit_transform(X_train)
X_test_scaled = scaler.transform(X_test)

Step 3: Model Building

We'll use a neural network for demand forecasting.

# Define the model

model = keras.Sequential([
layers.Dense(128, activation='relu', input_shape=[X_train_scaled.shape[1]]),
layers.Dense(64, activation='relu'),
layers.Dense(32, activation='relu'),
layers.Dense(1)
])

# Compile the model

model.compile(optimizer='adam', loss='mse')

# Train the model

history = model.fit(X_train_scaled, y_train, epochs=50, validation_split=0.2)

# Plot training and validation loss

plt.plot(history.history['loss'], label='train')
plt.plot(history.history['val_loss'], label='val')
plt.xlabel('Epoch')
plt.ylabel('Mean Squared Error')
plt.legend()
plt.show()

Step 4: Model Evaluation

Evaluate the model on the test set.

# Evaluate the model

test_predictions = model.predict(X_test_scaled)
mse = mean_squared_error(y_test, test_predictions)
print(f'Mean Squared Error on Test Set: {mse}')

# Plot true vs predicted values

plt.scatter(y_test, test_predictions)
plt.xlabel('True Values')
plt.ylabel('Predictions')
plt.title('True vs Predicted Sales')
plt.show()

Step 5: Model Deployment

For simplicity, we'll use a saved model to make future predictions.

# Save the model
model.save('demand_forecasting_model.h5')

# Load the model for future predictions

loaded_model = keras.models.load_model('demand_forecasting_model.h5')

# Example prediction with new data

new_data = np.array([[0.5, 1.2, 0.3, 0, 1, 0, 0, 0, 1]]) # Example new data
new_data_scaled = scaler.transform(new_data)
predicted_sales = loaded_model.predict(new_data_scaled)
print(f'Predicted Sales: {predicted_sales[0][0]}')

Final Report

Title: Supply Chain Management Demand Forecasting Report

1. Overview

● Objective: To forecast product demand using a neural network model.

● Model Performance: Mean Squared Error on Test Set: MSE_value

2. Data Preprocessing

● Missing values were handled.

● Date features were engineered (Month, Day of Week, Quarter).
● Categorical variables were one-hot encoded.
● Data was split into training and testing sets and standardized.

3. Model Building

● A neural network model with three hidden layers was used.

● The model was trained for 50 epochs with a validation split of 20%.
4. Model Evaluation

● The model's Mean Squared Error on the test set is MSE_value.

● A scatter plot of true vs predicted sales values shows good predictive
performance.

5. Model Deployment

● The trained model was saved and can be loaded for future predictions.
● An example prediction was made using new data, demonstrating the
model's capability.

Conclusion: The neural network model provides accurate demand forecasts,

which can be used to optimize inventory levels, reduce stockouts, and improve
supply chain efficiency. Regular updates and retraining of the model with new
data will help maintain its accuracy.

This project plan outlines the steps to implement a demand forecasting model for
supply chain management using machine learning, complete with data
preparation, model building, evaluation, and deployment.

Sample report

Supply Chain Analysis: Data Exploration and Visualization¶

You are going to see different types of plots I have used . Feel Free to explore
them

Streamlit Dashboard:
To complement the exploratory data analysis, I have created an interactive Streamlit dashboard. The dashboard
provides real-time visualization and analysis of the supply chain data, making it easier to identify trends, patterns,
and areas for improvement.

Dashboard Link: Click Here To Explore The Dashboard 📊

Summary
Welcome to this notebook where I dive deep into the analysis of supply chain data. This notebook focuses on key
metrics essential for understanding the performance and efficiency of supply chain operations.

Objectives:

● Data Exploration: Gain insights into the supply chain data by exploring production volumes, stock levels,
order quantities, revenue, costs, lead times, shipping costs, transportation routes, risks, and sustainability
factors.
● Visualization: Create informative visualizations to better understand the relationships and distributions
within the data.
● Dashboard Development: Build an interactive Streamlit dashboard to visualize the key metrics and
facilitate real-time analysis.

Key Sections:

1. Data Preprocessing
● Handling missing values.
● Data cleaning and preparation.
2. Exploratory Data Analysis (EDA)
● Descriptive statistics.
● Visualization of key metrics.
3. Visualizations
● Production volumes, stock levels, and lead times.
● Revenue distribution by location.
● Manufacturing costs by supplier.
● Comparison of price and manufacturing costs by product type.
● Relationship between production volume, stock levels, and order quantities.
● Distribution of shipping costs by shipping carriers.
● Average lead time by product type.
● Transportation routes and their frequency.
 ● Supply chain risk distribution by risk factors.
● Sustainability factors in the supply chain.
4. Streamlit Dashboard
● Introduction to the interactive dashboard.
● Instructions on how to access and use the dashboard.
● Link to the deployed Streamlite dashboard.
Reference link