Journal of Korean Institute of Industrial Engineers (대한산업공학회지)

Korean Institute of Industrial Engineers (대한산업공학회)
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Prediction of Customer Failure Rate Using Data Mining in the LCD Industry

LCD 디스플레이 산업에서 데이터마이닝 알고리즘을 이용한 고객 불량률 예측

  • You, Hwa Youn (School of Industrial Management Engineering, Korea University) ;
  • Kim, Seoung Bum (School of Industrial Management Engineering, Korea University)
  • 유화윤 (고려대학교 산업경영공학과) ;
  • 김성범 (고려대학교 산업경영공학과)
  • Received : 2016.01.28
  • Accepted : 2016.05.31
  • Published : 2016.10.15
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Abstract

Prediction of customer failure rates plays an important role for establishing appropriate management policies and improving the profitability for industries. For these reasons, many LCD (Liquid crystal display) manufacturing industries have attempted to construct prediction models for customer failure rates. However, most traditional models are based on the parametric approaches requiring the assumption that the data follow a certain probability distribution. To address the limitation posed by the distributional assumption underpinning traditional models, we propose using parameter-free data mining models for predicting customer failure rates. In addition, we use various information associated with product attributes and field return for more comprehensive analysis. The effectiveness and applicability of the proposed method were demonstrated with a real dataset from one of the leading LCD companies in South Korea.

Keywords

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