Opportunity cost estimation using temporal association rule mining

Abstract

Modern production planning and inventory control has been developed. However, efficient method for evaluating the lost sales in different time-periods has not been proposed. In this paper, a mathematical model to estimate the opportunity cost based on association rules is proposed considering cross-selling effect in various time-spans. A numerical example is used to explain the new approach. The results show that the proposed approach can gain a well insight into the cross-selling effect among items and is applicable for large sized transaction database.