K-means clustering combined with principal component analysis for material profiling in automotive supply chains

Abstract

At a time where available data is rapidly increasing in both volume and variety, descrip- tive Data Mining (DM) can be an important tool to support meaningful decision-making processes in dynamic Supply Chain (SC) contexts. Up until now, however, scarce attention has been given to the application of DM techniques in the field of inventory management. Here, we take advantage of descriptive DM to detect and grasp important patterns among several features that coexist in a real-world automotive electronics SC. Concretely, Principal Component Analysis (PCA) is employed to analyze and understand the interrelations between ten quantitative and dependent variables in a multi-item/multi-supplier environment. Afterwards, the principal component scores are character- ized via a K-means clustering, allowing us to classify the samples into four clusters and to derive di↵erent profiles for the multiple inventory items. This work provides evidence that descriptive DM contributes to find interesting feature-patterns, resulting in the identification of important risk profiles that may e↵ectively leverage inventory management for superior performance.This work has been supported by FCT - Fundacao para a Ciencia e Tecnologia within the R&D Units Project Scope: UIDB/00319/2020. The authors want to extend grateful thanks to the editors and reviewers, whose comments have greatly improved the quality of the paper

    Similar works