• Communications for Statistical Applications and Methods
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• v.10 no.1
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• pp.153-166
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• 2003

This study presents the time-divided forecasting model to integrate evolutionary optimization algorithm and change point detection based on artificial neural networks (ANN) for the prediction of (Korea) stock price index. The genetic algorithm(GA) is introduced as an evolutionary optimization method in this study. The basic concept of the proposed model is to obtain intervals divided by change points, to identify them as optimal or near-optimal change point groups, and to use them in the forecasting of the stock price index. The proposed model consists of three phases. The first phase detects successive change points. The second phase detects the change-point groups with the GA. Finally, the third phase forecasts the output with ANN using the GA. This study examines the predictability of the proposed model for the prediction of stock price index.

• The Korean Journal of Applied Statistics
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• v.22 no.5
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• pp.1007-1017
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• 2009

Forecasting for air demand such as passengers and freight has been one of the main interests for air industries. This research has mainly focus on the comparison the performance between the univariate seasonal ARIMA models and the multivariate time series models. In this paper, we used real data to predict demand on international passenger and freight. And multivariate time series models are better than the univariate models based on the accuracy criteria.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2021.05a
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• pp.43-45
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• 2021

The short-term quantitative precipitation prediction (QPF) system is important socially and economically to prevent damage from severe weather. Recently, many studies for short-term QPF model applying the Deep Neural Network (DNN) has been conducted. These studies require the sophisticated pre-processing because the mistreatment of various and vast meteorological data sets leads to lower performance of QPF. Especially, for more accurate prediction of the non-linear trends in precipitation, the dataset needs to be carefully handled based on the physical and dynamical understands the data. Thereby, this paper proposes the following approaches: i) refining and combining major factors (weather radar, terrain, air temperature, and so on) related to precipitation development in order to construct training data for pattern analysis of precipitation; ii) producing predicted precipitation fields based on Convolutional with ConvLSTM. The proposed algorithm was evaluated by rainfall events in 2020. It is outperformed in the magnitude and strength of precipitation, and clearly predicted non-linear pattern of precipitation. The algorithm can be useful as a forecasting tool for preventing severe weather.

• Journal of Intelligence and Information Systems
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• v.18 no.4
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• pp.43-57
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• 2012

To enhance the competitive advantage in a constantly changing business environment, an enterprise management must make the right decision in many business activities based on both internal and external information. Thus, providing accurate information plays a prominent role in management's decision making. Intuitively, historical data can provide a feasible estimate through the forecasting models. Therefore, if the service department can estimate the service quantity for the next period, the service department can then effectively control the inventory of service related resources such as human, parts, and other facilities. In addition, the production department can make load map for improving its product quality. Therefore, obtaining an accurate service forecast most likely appears to be critical to manufacturing companies. Numerous investigations addressing this problem have generally employed statistical methods, such as regression or autoregressive and moving average simulation. However, these methods are only efficient for data with are seasonal or cyclical. If the data are influenced by the special characteristics of product, they are not feasible. In our research, we propose a forecasting framework that predicts service demand of manufacturing organization by combining Case-based reasoning (CBR) and leveraging an unsupervised artificial neural network based clustering analysis (i.e., Self-Organizing Maps; SOM). We believe that this is one of the first attempts at applying unsupervised artificial neural network-based machine-learning techniques in the service forecasting domain. Our proposed approach has several appealing features : (1) We applied CBR and SOM in a new forecasting domain such as service demand forecasting. (2) We proposed our combined approach between CBR and SOM in order to overcome limitations of traditional statistical forecasting methods and We have developed a service forecasting tool based on the proposed approach using an unsupervised artificial neural network and Case-based reasoning. In this research, we conducted an empirical study on a real digital TV manufacturer (i.e., Company A). In addition, we have empirically evaluated the proposed approach and tool using real sales and service related data from digital TV manufacturer. In our empirical experiments, we intend to explore the performance of our proposed service forecasting framework when compared to the performances predicted by other two service forecasting methods; one is traditional CBR based forecasting model and the other is the existing service forecasting model used by Company A. We ran each service forecasting 144 times; each time, input data were randomly sampled for each service forecasting framework. To evaluate accuracy of forecasting results, we used Mean Absolute Percentage Error (MAPE) as primary performance measure in our experiments. We conducted one-way ANOVA test with the 144 measurements of MAPE for three different service forecasting approaches. For example, the F-ratio of MAPE for three different service forecasting approaches is 67.25 and the p-value is 0.000. This means that the difference between the MAPE of the three different service forecasting approaches is significant at the level of 0.000. Since there is a significant difference among the different service forecasting approaches, we conducted Tukey's HSD post hoc test to determine exactly which means of MAPE are significantly different from which other ones. In terms of MAPE, Tukey's HSD post hoc test grouped the three different service forecasting approaches into three different subsets in the following order: our proposed approach > traditional CBR-based service forecasting approach > the existing forecasting approach used by Company A. Consequently, our empirical experiments show that our proposed approach outperformed the traditional CBR based forecasting model and the existing service forecasting model used by Company A. The rest of this paper is organized as follows. Section 2 provides some research background information such as summary of CBR and SOM. Section 3 presents a hybrid service forecasting framework based on Case-based Reasoning and Self-Organizing Maps, while the empirical evaluation results are summarized in Section 4. Conclusion and future research directions are finally discussed in Section 5.

• Journal of Institute of Convergence Technology
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• v.9 no.1
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• pp.31-36
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• 2019

After 30 years of KKP model analysis and extended 30 years of accuracy analysis, the unique correlation and various problems between measured horizontal surface insolation and measured weather data are found in this paper. The KKP model's 10yrs daily total horizontal surface insolation forecasting was averaged about 97.7% on average, and the forecasting accuracy at peak times per day was about 92.1%, which is highly applicable regardless of location and weather conditions nationwide. The daily total solar radiation forecasting accuracy of the modified KKP cloud model was 98.9%, similar to the KKP model, and 93.0% of the forecasting accuracy at the peak time per day. And the results of evaluating the accuracy of calculation for 30 years of KKP model were cloud model 107.6% and cloud model 95.1%. During the accuracy analysis evaluation, this study found that inaccuracies in measurement data of cloud cover should be clearly assessed by the Meteorological Administration.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.35 no.1
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• pp.66-78
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• 2012

This paper proposes a computation model of the quantity supplied to optimize inventory costs for the fast fashion. The model is based on a forecasting, a store and production capacity, an assortment planning and quick response model for fast fashion retailers, respectively. It is critical to develop a standardized business process and mathematical model to respond market trends and customer requirements in the fast fashion industry. Thus, we define a product supply model that consists of forecasting, assortment plan, store capacity plan based on the visual merchandising, and production capacity plan considering quick response of the fast fashion retailers. For the forecasting, the decomposition method and multiple regression model are applied. In order to optimize inventory costs. A heuristic algorithm for the quantity supplied is designed based on the assortment plan, store capacity plan and production capacity plan. It is shown that the heuristic algorithm produces a feasible solution which outperforms the average inventory cost of a global fast fashion company.

• Atmosphere
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• v.29 no.1
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• pp.1-12
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• 2019

For the allergy patient who needs to know the situation about the extent of pollen risk, the National Institute of Meteorological Sciences developed a pollen forecasting system based on the Community Multiscale Air Quality Modeling (CMAQ). In the old system, pollen emission from the oak was estimated just based on the airborne concentration and meteorology factors, resulted in high uncertainty. For improving the quality of current pollen forecasting system, therefore the estimation of pollen emission is now corrected based on the observation of pollen emission at the oak forest to better reflect the real emission pattern. In this study, the performance of the previous (NIMS2014) and current (NIMS2016) model system was compared using observed oak pollen concentration. Daily pollen concentrations and emissions were simulated in pollen season 2016 and accuracy of onset and end of pollen season were evaluated. In the NIMS2014 model, pollen season was longer than actual pollen season; The simulated pollen season started 6 days earlier and finished 13.25 days later than the actual pollen season. The NIMS2016 model, however, the simulated pollen season started only 1.83 days later, and finished 0.25 days later than the actual pollen season, showing the improvement to predict the temporal range of pollen events. Also, the NIMS2016 model shows better performance for the prediction of pollen concentration, while there is a still large uncertainty to capture the maximum pollen concentration at the target site. Continuous efforts to correct these problems will be required in the future.

• Journal of Korea Water Resources Association
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• v.45 no.11
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• pp.1187-1199
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• 2012

A hybrid forecasting scheme based on wavelet decomposition coupled to a support vector machine model is presented for water demand series that exhibit nonlinear behavior. The use of wavelet transform followed by the SVM model of each leading component is explored as a model for water demand data. The proposed forecasting model yields better results than a traditional ARIMA time series forecasting model in terms of self-prediction problem as well as reproducing the properties of the observed water demand data by making use of the advantages of wavelet transform and SVM model. The proposed model can be used to substantially and significantly improve the water demand forecasting and utilized in a real operation.

• Industrial Engineering and Management Systems
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• v.12 no.3
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• pp.244-253
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• 2013

In industries, shipping is an important issue in improving the forecasting accuracy of sales. This paper introduces a hybrid method and plural methods are compared. Focusing the equation of exponential smoothing method (ESM) that is equivalent to (1, 1) order autoregressive-moving-average (ARMA) model equation, a new method of estimating the smoothing constant in ESM had been proposed previously by us which satisfies minimum variance of forecasting error. Generally, the smoothing constant is selected arbitrarily. However, this paper utilizes the above stated theoretical solution. Firstly, we make estimation of ARMA model parameter and then estimate the smoothing constant. Thus, theoretical solution is derived in a simple way and it may be utilized in various fields. Furthermore, combining the trend removing method with this method, we aim to improve forecasting accuracy. This method is executed in the following method. Trend removing by the combination of linear and 2nd order nonlinear function and 3rd order nonlinear function is executed to the original production data of two kinds of bread. Genetic algorithm is utilized to search the optimal weight for the weighting parameters of linear and nonlinear function. For comparison, the monthly trend is removed after that. Theoretical solution of smoothing constant of ESM is calculated for both of the monthly trend removing data and the non-monthly trend removing data. Then forecasting is executed on these data. The new method shows that it is useful for the time series that has various trend characteristics and has rather strong seasonal trend. The effectiveness of this method should be examined in various cases.

• Journal of Distribution Science
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• v.12 no.2
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• pp.59-71
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• 2014

Purpose - In recent years, many firms have attempted various approaches to cope with the continual increase of aviation transportation. The previous research into freight charge forecasting models has focused on regression analyses using a few influence factors to calculate the future price. However, these approaches have limitations that make them difficult to apply into practice: They cannot respond promptly to small price changes and their predictive power is relatively low. Therefore, the current study proposes a freight charge-forecasting model using time series data instead a regression approach. The main purposes of this study can thus be summarized as follows. First, a proper model for freight charge using the autoregressive integrated moving average (ARIMA) model, which is mainly used for time series forecast, is presented. Second, a modified ARIMA model for freight charge prediction and the standard process of determining freight charge based on the model is presented. Third, a straightforward freight charge prediction model for practitioners to apply and utilize is presented. Research design, data, and methodology - To develop a new freight charge model, this study proposes the ARIMAC(p,q) model, which applies time difference constantly to address the correlation coefficient (autocorrelation function and partial autocorrelation function) problem as it appears in the ARIMA(p,q) model and materialize an error-adjusted ARIMAC(p,q). Cargo Account Settlement Systems (CASS) data from the International Air Transport Association (IATA) are used to predict the air freight charge. In the modeling, freight charge data for 72 months (from January 2006 to December 2011) are used for the training set, and a prediction interval of 23 months (from January 2012 to November 2013) is used for the validation set. The freight charge from November 2012 to November 2013 is predicted for three routes - Los Angeles, Miami, and Vienna - and the accuracy of the prediction interval is analyzed using mean absolute percentage error (MAPE). Results - The result of the proposed model shows better accuracy of prediction because the MAPE of the error-adjusted ARIMAC model is 10% and the MAPE of ARIMAC is 11.2% for the L.A. route. For the Miami route, the proposed model also shows slightly better accuracy in that the MAPE of the error-adjusted ARIMAC model is 3.5%, while that of ARIMAC is 3.7%. However, for the Vienna route, the accuracy of ARIMAC is better because the MAPE of ARIMAC is 14.5% and the MAPE of the error-adjusted ARIMAC model is 15.7%. Conclusions - The accuracy of the error-adjusted ARIMAC model appears better when a route's freight charge variance is large, and the accuracy of ARIMA is better when the freight charge variance is small or has a trend of ascent or descent. From the results, it can be concluded that the ARIMAC model, which uses moving averages, has less predictive power for small price changes, while the error-adjusted ARIMAC model, which uses error correction, has the advantage of being able to respond to price changes quickly.