Explaining to users why some items are recommended is critical, as it can help users to make better decisions, increase their satisfaction, and gain their trust in recommender systems (RS). However, existing explainable RS usually consider explanation as a side output of the recommendation model, which has two problems: (1) It is difficult to evaluate the produced explanations, because they are usually model-dependent, and (2) as a result, how the explanations impact the recommendation performance is less investigated. In this article, explaining recommendations is formulated as a ranking task and learned from data, similarly to item ranking for recommendation. This makes it possible for standard evaluation of explanations via ranking metrics (e.g., Normalized Discounted Cumulative Gain). Furthermore, this article extends traditional item ranking to an item–explanation joint-ranking formalization to study if purposely selecting explanations could reach certain learning goals, e.g., improving recommendation performance. A great challenge, however, is that the sparsity issue in the user-item-explanation data would be inevitably severer than that in traditional user–item interaction data, since not every user–item pair can be associated with all explanations. To mitigate this issue, this article proposes to perform two sets of matrix factorization by considering the ternary relationship as two groups of binary relationships. Experiments on three large datasets verify the solution’s effectiveness on both explanation ranking and item recommendation.
more »
« less
An Explainable Artificial Intelligence Approach for Multi-Criteria ABC Item Classification
Multi-criteria ABC classification is a useful model for automatic inventory management and optimization. This model enables a rapid classification of inventory items into three groups, having varying managerial levels. Several methods, based on different criteria and principles, were proposed to build the ABC classes. However, existing ABC classification methods operate as black-box AI processes that only provide assignments of the items to the different ABC classes without providing further managerial explanations. The multi-criteria nature of the inventory classification problem makes the utilization and the interpretation of item classes difficult, without further information. Decision makers usually need additional information regarding important characteristics that were crucial in determining the managerial classes of the items because such information can help managers better understand the inventory groups and make inventory management decisions more transparent. To address this issue, we propose a two-phased explainable approach based on eXplainable Artificial Intelligence (XAI) capabilities. The proposed approach provides both local and global explanations of the built ABC classes at the item and class levels, respectively. Application of the proposed approach in inventory classification of a firm, specialized in retail sales, demonstrated its effectiveness in generating accurate and interpretable ABC classes. Assignments of the items to the different ABC classes were well-explained based on the item’s criteria. The results in this particular application have shown a significant impact of the sales, profit, and customer priority as criteria that had an impact on determining the item classes.
more »
« less
- Award ID(s):
- 1849213
- NSF-PAR ID:
- 10410855
- Date Published:
- Journal Name:
- Journal of Theoretical and Applied Electronic Commerce Research
- Volume:
- 18
- Issue:
- 2
- ISSN:
- 0718-1876
- Page Range / eLocation ID:
- 848 to 866
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
More Like this
-
-
As recommendation is essentially a comparative (or ranking) process, a good explanation should illustrate to users why an item is believed to be better than another, i.e., comparative explanations about the recommended items. Ideally, after reading the explanations, a user should reach the same ranking of items as the system’s. Unfortunately, little research attention has yet been paid on such comparative explanations. In this work, we develop an extract-and-refine architecture to explain the relative comparisons among a set of ranked items from a recommender system. For each recommended item, we first extract one sentence from its associated reviews that best suits the desired comparison against a set of reference items. Then this extracted sentence is further articulated with respect to the target user through a generative model to better explain why the item is recommended. We design a new explanation quality metric based on BLEU to guide the end-to-end training of the extraction and refinement components, which avoids generation of generic content. Extensive offline evaluations on two large recommendation benchmark datasets and serious user studies against an array of state-of-the-art explainable recommendation algorithms demonstrate the necessity of comparative explanations and the effectiveness of our solution.more » « less
-
Lauw H., Wong RW. (Ed.)Multidimensional data appear in various interesting applications, e.g., sales data indexed by stores, items, and time. Oftentimes, data are observed aggregated over multiple data atoms, thus exhibit low resolution. Temporal aggregation is most common, but many datasets are also aggregated over other attributes. Multidimensional data, in particular, are sometimes available in multiple coarse views, aggregated across different dimensions – especially when sourced by different agencies. For instance, item sales can be aggregated temporally, and over groups of stores based on their location or affiliation. However, data in finer granularity significantly benefit forecasting and data analytics, prompting increasing interest in data disaggregation methods. In this paper, we propose Tendi, a principled model that efficiently disaggregates multidimensional (tensor) data from multiple views, aggregated over different dimensions. Tendi employs coupled tensor factorization to fuse the multiple views and provide recovery guarantees under realistic conditions. We also propose a variant of Tendi, called TendiB, which performs the disaggregation task without any knowledge of the aggregation mechanism. Experiments on real data from different domains demonstrate the high effectiveness of the proposed methods.more » « less
-
This paper studies an inventory management problem faced by an upstream supplier that is in a collaborative agreement, such as vendor-managed inventory (VMI), with a retailer. A VMI partnership provides the supplier an opportunity to manage in- ventory for the supply chain in exchange for point-of-sales (POS)- and inventory-level information from the retailer. However, retailers typically possess superior local market information and as has been the case in recent years, are able to capture and analyze customer purchasing behavior beyond the traditional POS data. Such analyses provide the retailer access to market signals that are otherwise hard to capture using POS information. We show and quantify the implication of the financial obligations of each party in VMI that renders communication of such important market signals as noncredible. To help insti- tute a sound VMI collaboration, we propose learn and screen—a dynamic inventory mechanism—for the supplier to effectively manage inventory and information in the supply chain. The proposed mechanism combines the ability of the supplier to learn about market conditions from POS data (over multiple selling periods) and dynamically de- termine when to screen the retailer and acquire his private demand information. Inventory decisions in the proposed mechanism serve a strategic purpose in addition to their classic role of satisfying customer demand. We show that our proposed dynamic mechanism significantly improves the supplier’s expected profit and increases the efficiency of the overall supply chain operations under a VMI agreement. In addition, we determine the market conditions in which a strategic approach to VMI results in significant profit im- provements for both firms, particularly when the retailer has high market power (i.e., when the supplier highly depends on the retailer) and when the supplier has relatively less knowledge about the end customer/market compared with the retailer.more » « less
-
To enhance conceptual understanding of mathematical models for inventory management, we developed poetry-writing assignments for a required, upper-level undergraduate course in an industrial and systems engineering program. Specifically, two poetry-writing assignments were incorporated into an inventory and supply chain system design and control course. The first assignment, due one week before the first term exam, asked students to write a poem about a concept, model or topic related to deterministic inventory modeling. The second and assignment, due one week before the second term exam, asked the students to write a poem about a concept, model or topic related to stochastic inventory modeling. The students were also asked to respond to several open-ended questions on their approach to writing the poems and their assessment of the impact of these poetry writing on improving their conceptual understanding of the underlying mathematical models. Data was collected in Spring 2022 semester. The student written-poetry will be analyzed for correctness and to identify misunderstandings or gaps in understanding. In this paper, we will present our findings from the content analysis of student-written poetry and our preliminary findings on the effectiveness of poetry-writing assignments to enhance conceptual understanding of mathematical models for inventory management.more » « less