Optimizing Procurement Efficiency by Implementing K-Means and Random Forest in Kopegtel Samarinda’s Warehouse System

Abstract

Procurement is a company’s activity to purchase goods or equipment needed in operations. In the management process, a procurement management system is often used to facilitate this management, such as at CV Indocitra Multi Artha, which uses the “Sistem Warehouse Kopegtel Samarinda.” The system provides significant assistance to the company, but large requests can be overwhelming to be handled by the manager and can cause an overload information problem. Research was conducted to deal with these problems by implementing a data mining algorithm as a procurement recommendation system. K-means and Random Forest algorithms were chosen as methods for the research. The algorithm is processed within two critical steps, first by K-Means to get cluster data and then by predicting it with Random Forest to get a recommendation for whether the object should be bought or not. Hyperparameter tuning was performed to optimize the model’s performance, yielding an F1-Score of 86.95%, representing the balance between precision and recall, and an ROC AUC value of 82.34%. These substantial metric outcomes indicate that the model can provide practical recommendations

Keywords

• crisp-dm, k-means, procurement, random forest, warehouse