Proceedings of International Conference on Applied Innovation in IT
2025/06/27, Volume 13, Issue 2, pp.269-278

Predicting Hospital Medicine Needs Based on a Multiple Linear Regression Model


Bashar Talib AL Nuaimi, Wedyan Habeeb Hameed and Wisam Sami Mohsin


Abstract: The study's issue is that hospitals are unable to accurately match the predicted demand and actual consumption for medications due to the use of traditional and ineffective forecasting techniques. The study's objective: 1) Finding a systematic approach based on modern scientific forecasting methods based on multi-factor mathematical models. 2) Selecting the optimal forecasting model among the methods utilized in this study to predict the future needs of hospitals for medicines in the coming years. 3) Calculating the discrepancy rate for each drug annually to check the forecasting accuracy. Three statistical analyses were performed: correlation and regression, time series, and retrospective forecast between estimated demand and actual consumption. Three accuracy indicators (MAPE, MAD, and MSD) were used as criteria for selecting the optimal model that best describes the pattern of future demands for six pharmaceuticals and five factors influencing drugs' consumption from 2015 to 2019. Three time series forecasting techniques (ALT, SES, and DES) were tested and compared with the MLR model to verify its forecasting accuracy. Time series techniques were compared to each other; DES was selected as the optimal technique among them. The results showed that the mean MAPE for all medications by using MLR and DES models was 15.63 and 24.61, respectively. Therefore, we conclude that MLR is the optimal model for hospital inventory management and forecasting future needs since it has a lower relative error rate compared to DES. This indicates that the influence of independent factors on demand is stronger than the time factor. Therefore, MLR outperformed DES, which relies on the time factor. With the exception of Infliximab 100mg and Tocilizumab 20mg/ml, whose values exceeded 25%, the average discrepancy rates between the estimated demand and actual consumption of each medication over a 5-year period are statistically significant and within the acceptable bounds.

Keywords: Correlation and Regression Analysis, Forecast, Future Needs, Multifactorial Model, Retrospective Analysis, Time Series Analysis.

DOI: 10.25673/120446

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