Machine learning algorithms applied to the estimation of discounts in basic food basket items

Authors

DOI:

https://doi.org/10.15675/gepros.3037

Keywords:

Machine Learning, Public Administration, Public Procurement, Basic Food Basket, Public Purchasing

Abstract

Purpose: This study evaluates machine learning (ML) models for estimating discounts in public procurement of national basic food basket items and analyzes the most relevant features influencing these estimations. Theoretical framework: ML models can be applied in various fields, including engineering, medicine, public health, and economics. These algorithms are capable of uncovering hidden patterns that traditional statistical techniques might miss, making them suitable for predictive and interpretative analyses regarding the characteristics of discounts offered in the procurement of basic food basket items.  Methodology/Approach: The algorithms Random Forest, XGBoost, and Artificial Neural Networks were employed and evaluated using mean absolute error and root mean square error. The data were obtained from the Court of Accounts of the State of Paraná and included 18 items from the basic food basket. Findings: Overall, the XGBoost model exhibited the best performance based on error metrics. Regarding feature importance, the ‘quantity’ variable was most significant for estimating discounts on bread and butter, whereas the ‘year of approval’ was a key factor for soybean oil, French bread, beef, rice, and beans. Research, practical & social implications: These models can provide valuable information to managers and oversight bodies, supporting budget planning, fraud detection, and price negotiation in public procurement, thereby contributing to more cost-effective and transparent public administration. However, the models showed limitations in estimating discount values in situations of large variation peaks. Originality/Value: From the preprocessing stage, we suggest a deeper analysis of the data management system, as the fragmented and non-standardized files make data extraction difficult for individuals outside of academia or the corporate sector. ML models can assist public managers in aligning with the principles and trends introduced by the New Public Procurement Law, in a market that accounts for 12% of the national GDP.

Author Biographies

Jose Mateus Rodrigues dos Santos, Federal Technological University of Paraná

Federal Technological University of Paraná (UFTPR), Londrina – Paraná (PR) – Brazil. Undergraduate student in Production Engineering.

Bruno Samways dos Santos, Federal Technological University of Paraná

Federal Technological University of Paraná (UFTPR), Londrina – Paraná (PR) – Brazil. Adjunct Professor in the Department of Production Engineering. Researcher in the Optimization and Data Mining Research Group (GPOMD).

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Published

2025-11-13

How to Cite

Rodrigues dos Santos, J. M., & Samways dos Santos, B. (2025). Machine learning algorithms applied to the estimation of discounts in basic food basket items. Revista Gestão Da Produção Operações E Sistemas, 20(00), e025006. https://doi.org/10.15675/gepros.3037