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ZENODO
Preprint . 2025
License: CC BY
Data sources: ZENODO
ZENODO
Preprint . 2025
License: CC BY
Data sources: Datacite
ZENODO
Preprint . 2025
License: CC BY
Data sources: Datacite
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Improving the Accuracy and Interpretability of Sales Forecasts in ERP Systems using Predictive Analytics with Machine Learning and Large Language Models

Authors: Scott-Emuakpor, Cassel;

Improving the Accuracy and Interpretability of Sales Forecasts in ERP Systems using Predictive Analytics with Machine Learning and Large Language Models

Abstract

The manufacturing industry's efficiency hinges on the seamless integration of production, inventory, and distribution processes. Enterprise Resource Planning (ERP) systems are the cornerstone of this integration, managing core functionalities from inventory to customer data. The next evolutionary step for these systems is the integration of Predictive Analytics, powered by Machine Learning (ML) and, more recently, Large Language Models (LLMs). This paper investigates the confluence of these technologies to enhance sales forecasting within ERP systems. We synthesize existing research on Machine Learning Models, which includes SARIMA, XGBoost, LSTM, and Random Forest for tasks like revenue prediction, channel-specific sales, and seasonal trend forecasting. The literature consistently indicates that ensemble methods like XGBoost and deep learning models like LSTM often achieve high accuracy by capturing complex, non-linear patterns in historical data. However, a major challenge persists due to the “black box” nature of these sophisticated models, which often limits transparency and can impede user trust and widespread adoption. To address this, we propose a novel framework that integrates LLMs not for prediction, but for interpretability. This framework uses statistical techniques like Pearson correlation for robust feature selection and then leverages LLMs to translate model outputs into natural language summaries and actionable business recommendations. This synergistic approach bridges the critical gap between raw analytical output and strategic, interpretable decision-making, charting a course for the next generation of intelligent, user-centric ERP systems. 

Keywords

Machine Learning, Long Short Term Memory (LSTM), Manufacturing, Large Language Models, Predictive Analytics, Enterprise Resource Planning (ERP), Sales Forecasting, XGBoost

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
Average
Green