Machine learning in logistics : Increasing the performance of machine learning algorithms on two specific logistic problems

Abstract: Data Ductus, a multination IT-consulting company, wants to develop an AI that monitors a logistic system and looks for errors. Once trained enough, this AI will suggest a correction and automatically right issues if they arise. This project presents how one works with machine learning problems and provides a deeper insight into how cross-validation and regularisation, among other techniques, are used to improve the performance of machine learning algorithms on the defined problem. Three techniques are tested and evaluated in our logistic system on three different machine learning algorithms, namely Naïve Bayes, Logistic Regression and Random Forest. The evaluation of the algorithms leads us to conclude that Random Forest, using cross-validated parameters, gives the best performance on our specific problems, with the other two falling behind in each tested category. It became clear to us that cross-validation is a simple, yet powerful tool for increasing the performance of machine learning algorithms.