• Journal of the Korea Safety Management & Science
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• v.18 no.4
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• pp.161-169
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• 2016

In this research, we propose efficient demand forecasting scheme for intermittent demand. For this purpose, we first extensively analyze the drawbacks of the existing forecasting methods such as Croston method and Syntetos-Boylan approximation, then using these findings we propose the new demand forecasting method. Our goal is to develop forecasting method robust across many situations, not necessarily optimal for a limited number of specific situations. For this end, we adopt combining forecasting method that utilizes unbiased forecasting methods such as simple exponential smoothing and simple moving average. Various simulation results show that the proposed forecasting method performed better than the existing forecasting methods.

• Journal of Information Processing Systems
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• v.12 no.1
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• pp.109-128
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• 2016

This paper presents a new combined forecasting method that is guided by the soft set theory (CFBSS) to predict business failures with different sample sizes. The proposed method combines both qualitative analysis and quantitative analysis to improve forecasting performance. We considered an expert system (ES), logistic regression (LR), and support vector machine (SVM) as forecasting components whose weights are determined by the receiver operating characteristic (ROC) curve. The proposed procedure was applied to real data sets from Chinese listed firms. For performance comparison, single ES, LR, and SVM methods, the combined forecasting method based on equal weights (CFBEWs), the combined forecasting method based on neural networks (CFBNNs), and the combined forecasting method based on rough sets and the D-S theory (CFBRSDS) were also included in the empirical experiment. CFBSS obtains the highest forecasting accuracy and the second-best forecasting stability. The empirical results demonstrate the superior forecasting performance of our method in terms of accuracy and stability.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.41 no.1
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• pp.50-58
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• 2018

Intermittent demand is a demand with a pattern in which zero demands occur frequently and non-zero demands occur sporadically. This type of demand mainly appears in spare parts with very low demand. Croston's method, which is an initiative intermittent demand forecasting method, estimates the average demand by separately estimating the size of non-zero demands and the interval between non-zero demands. Such smoothing type of forecasting methods can be suitable for mid-term or long-term demand forecasting because those provides the same demand forecasts during the forecasting horizon. However, the smoothing type of forecasting methods aims at short-term forecasting, so the estimated average forecast is a factor to decrease accuracy. In this paper, we propose a forecasting method to improve short-term accuracy by improving Croston's method for intermittent demand forecasting. The proposed forecasting method estimates both the non-zero demand size and the zero demands' interval separately, as in Croston's method, but the forecast at a future period adjusted by binomial weight according to occurrence probability. This serves to improve the accuracy of short-term forecasts. In this paper, we first prove the unbiasedness of the proposed method as an important attribute in forecasting. The performance of the proposed method is compared with those of five existing forecasting methods via eight evaluation criteria. The simulation results show that the proposed forecasting method is superior to other methods in terms of all evaluation criteria in short-term forecasting regardless of average size and dispersion parameter of demands. However, the larger the average demand size and dispersion are, that is, the closer to continuous demand, the less the performance gap with other forecasting methods.

• Journal of the Korean Data and Information Science Society
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• v.17 no.1
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• pp.63-76
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• 2006

Marine production forecasting in fisheries is a crucial factor for managing and maintaining fishery resources. Thus this paper aims to generate a forecasting model of total marine production. The most generally method of time series model is to generate the most optimal single forecasting model. But the method could induce a different forecasting results when it does not properly infer a model To overcome the defect, I am trying to propose a single forecasting through multiple time series model. In other word, by comparing and integrating the output resulted from ARIMA and VAR model (which are typical method in a forecasting methodology), I tried to draw a forecasting. It is expected to produce more stable and delicate forecasting prospect than a single model. Through this, I generated 3 models on a yearly and monthly data basis and then here I present a forecasting from 2006 to 2010 through comparing and integrating 3 models. In conclusion, marine production is expected to show a decreasing tendency for the coming years.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.53 no.10
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• pp.529-535
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• 2004

Load forecasting is essential in the electricity market for the participants to manage the market efficiently and stably. A wide variety of techniques/algorithms for load forecasting has been reported in many literatures. These techniques are as follows: multiple linear regression, stochastic time series, general exponential smoothing, state space and Kalman filter, knowledge-based expert system approach (fuzzy method and artificial neural network). These techniques have improved the accuracy of the load forecasting. In recent 10 years, many researchers have focused on artificial neural network and fuzzy method for the load forecasting. In this paper, we propose an algorithm of a hybrid load forecasting method using fuzzy linear regression and general exponential smoothing and considering the sensitivities of the temperature. In order to consider the lower load of weekends and Monday than weekdays, fuzzy linear regression method is proposed. The temperature sensitivity is used to improve the accuracy of the load forecasting through the relation of the daily load and temperature. And the normal load of weekdays is easily forecasted by general exponential smoothing method. Test results show that the proposed algorithm improves the accuracy of the load forecasting in 1996.

• Journal of Korean Institute of Industrial Engineers
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• v.20 no.4
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• pp.135-149
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• 1994

Demand forecasting is to estimate the demand of customers for products and services. Since the future is uncertain in nature, it is too difficult for us to predict exactly what will happen. Therefore, when the forecasting is performed upon the uncertain future, it is realistic to estimate the value of demand as an interval or a fuzzy number instead of a crisp number. In this paper, we propose a demand forecasting method using the standard back-propagation algorithm and then we extend the method to the case of interval inputs. Next, we demonstrate that the proposed method using the interval neural networks can represent the fuzziness of forecasting values as intervals. Last, we propose a demand forecasting method using the transformed input variables that can be obtained by taking account of the degree of influence between an input and an output.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.38 no.3
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• pp.159-168
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• 2015

Aggregate Production Planning determines levels of production, human resources, inventory to maximize company's profits and fulfill customer's demands based on demand forecasts. Since performance of aggregate production planning heavily depends on accuracy of given forecasting demands, choosing an accurate forecasting method should be antecedent for achieving a good aggregate production planning. Generally, typical forecasting error metrics such as MSE (Mean Squared Error), MAD (Mean Absolute Deviation), MAPE (Mean Absolute Percentage Error), and CFE (Cumulated Forecast Error) are utilized to choose a proper forecasting method for an aggregate production planning. However, these metrics are designed only to measure a difference between real and forecast demands and they are not able to consider any results such as increasing cost or decreasing profit caused by forecasting error. Consequently, the traditional metrics fail to give enough explanation to select a good forecasting method in aggregate production planning. To overcome this limitation of typical metrics for forecasting method this study suggests a new metric, WACFE (Weighted Absolute and Cumulative Forecast Error), to evaluate forecasting methods. Basically, the WACFE is designed to consider not only forecasting errors but also costs which the errors might cause in for Aggregate Production Planning. The WACFE is a product sum of cumulative forecasting error and weight factors for backorder and inventory costs. We demonstrate the effectiveness of the proposed metric by conducting intensive experiments with demand data sets from M3-competition. Finally, we showed that the WACFE provides a higher correlation with the total cost than other metrics and, consequently, is a better performance in selection of forecasting methods for aggregate production planning.

• Journal of the Korea Safety Management & Science
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• v.19 no.3
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• pp.97-107
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• 2017

This research studies on the demand forecasting for service parts considering parts life cycle, that gets relatively less attentions in the field of forecasting. Our goal is to develop forecasting method robust across many situations, not necessarily optimal for a limited number of specific situations. For this purpose, we first extensively analyze the drawbacks of the existing forecasting methods, then we propose the new demand forecasting method by using these findings and reinforcement leaning technique. Using simulation experiments, we proved that the proposed forecasting method is better than the existing methods under various experimental environments.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.59 no.6
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• pp.1041-1045
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• 2010

Short-term electric load forecasting of power systems is essential for the power system stability and the efficient power system operation. An accurate load forecasting scheme improves the power system security and saves some economic losses in power system operations. Due to scarcity of the historical same type of holiday load data, most big electric load forecasting errors occur on load forecasting for the holidays. The fuzzy linear regression model has showed good accuracy for the load forecasting of the holidays. However, it is not good enough to forecast the load of the election day. The concept of the load variation rate for the load forecasting of the election day is introduced. The proposed algorithm shows its good accuracy in that the average percentage error for the short-term 24 hourly loads forecasting of the election days is 2.27%. The accuracy of the proposed 24 hourly loads forecasting of the election days is compared with the fuzzy linear regression method. The proposed method gives much better forecasting accuracy with overall average error of 2.27%, which improved about average error of 2% as compared to the fuzzy linear regression method.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.65 no.6
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• pp.918-922
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• 2016

As the number of wind farms operating has increased, the interest of the central unit commitment and dispatch for wind power has increased as well. Wind power forecast is necessary for effective power system management and operation with high wind power penetrations. This paper presents the centralized wind power forecasting method, which is a forecast to combine all wind farms in the area into one, using time series models. Also, this paper proposes a prediction model modified with wind forecast error compensation. To demonstrate the improvement of wind power forecasting accuracy, the proposed method is compared with persistence model and new reference model which are commonly used as reference in wind power forecasting using Jeju Island data. The results of case studies are presented to show the effectiveness of the proposed wind power forecasting method.