Application of grey system theory to regional logistics demand prediction

It is very important to predict regional logistics demand. The GM(1,1) model of the logistics demand prediction is set up according to grey system theory. From the tested results calculated by some indexes, such as reliability, association degree, correlative value of posterior error and micro-error probability, the model of grey system theory for logistics demand is examined and certified. The prediction of the freight volume and the freight turnover in Luoyang city illustrates the effectiveness of the model. The prediction can offer a reference for the decision making with regards to the program of logistics industry.