Sales

Prediction
System
Enterprise Resource
Planning(ERP)
Team members

• Lobhas Nivsarkar(SA44)

• Aadarsh Sharma(SA54)

• Harsh Mehta(SA38)

• Nikhil Modi(SA41)

• Aryan Kapole(SA27)
 Problem Statement
Predict sales of a particular item based on the data present in the backend ERP
system. KPIs to track are: - Probability of sales of Item in forthcoming quarter, six
months and Fiscal Year- Optimal price for selling the product which will give
company the best possible chances of sales
Abstract
• The sales predicting system is an automated tool designed to forecast future sales based
on historical data and other relevant information.
• Uses machine learning algorithms and statistical models to analyze patterns and trends
in sales data, as well as external factors such as economic indicators, consumer
behavior, and market conditions.
• The output of the system provides insights and predictions that can be used by
businesses to optimize their sales strategies, adjust their inventory levels, and plan for
future growth. This abstract summarizes the purpose and methodology of the sales
predicting system and its potential benefits for businesses.
 Steps For Model
• Gather and clean data: Collect all the relevant data on the item's past sales history, including factors such
as the time of year, price, promotions, marketing campaigns, and other relevant information. Ensure that
the data is accurate, consistent, and free from errors.

• Feature engineering: Analyze the data to identify meaningful features that can be used to predict future
sales. For example, you can create features such as the time of year, seasonality, price, promotions,
marketing campaigns, customer demographics, and more.

• Choose the appropriate algorithm: Select an appropriate algorithm that best suits your data and the
problem you're trying to solve. For example, you can use regression models, such as linear regression,
decision trees, or random forest models, to predict sales based on past data.

• Train and validate the model: Split the data into training and validation sets, and train the model on the
training data. Then, validate the model on the validation set to ensure that it is not overfitting or
underfitting the data.Evaluate the model: Evaluate the model's performance using various metrics such as
accuracy, precision, recall, and F1 score. Use these metrics to fine-tune the model and improve its
accuracy.
• Optimize price: Once you have a model that can predict sales, you can use it to
determine the optimal price for the product. This can be done by testing different
prices and calculating the expected sales and revenue for each price point. Then,
choose the price that maximizes revenue while ensuring that it is competitive and
attractive to customers.
• Forecast sales: Once you have a trained model and an optimal price, you can use it to
forecast future sales for the next quarter, six months, and fiscal year. This can be done
by feeding the model with the relevant data for the upcoming period, such as
seasonality, promotions, marketing campaigns, and more.By following these steps,
you can predict sales for a particular item and optimize its price to maximize revenue
while ensuring that it is competitive and attractive to customers.
Enterprise Resource Planning(ERP)

• At its core, ERP is an application that automates business processes.

• ERP stands for Enterprise Resource Planning, which refers to a software system used by businesses to
manage their core operations such as finance, accounting, human resources, inventory management,
procurement, and other important functions.

• Provides insights and internal controls, drawing on a central database.

• Collects inputs from departments including accounting, manufacturing, supply, chain management,
sales, marketing and human resources (HR).

• An ERP system solves this problem by compiling information in a central database to grant managers
and employees cross-departmental visibility.
Modules of ERP
• Finance - A finance module, the foundation of just about every ERP

• system, manages the general ledger and all financial data. It tracks every

• transaction, including accounts payable (AP) and accounts receivable

• (AR), and handles reconciliations and financial reporting.

• Procurement - The procurement module manages purchasing, whether

• raw materials or finished goods. It can automate requests for quotes and

• purchase orders and, when linked to demand planning, minimize

• overbuying and underbuying.