Equivalent relationships of problem formulations optimizing forecast accuracy

Author

Yuan, X.-M. ; Yeo, W.M. ; Low, J.M.W.

Author_Institution

Singapore Inst. of Manuf. Technol., Singapore, Singapore

fYear

2011

fDate

6-9 Dec. 2011

Firstpage

111

Lastpage

115

Abstract

This paper discusses the relationships among the optimization problem formulations which optimize the forecasting accuracy indices, MAPE, MAD and RMSE, respectively. The paper proposes the base optimization problem formulation that is equivalent to all the optimization formulations based on the forecasting accuracy indices, MAPE, MAD and RMSE. The findings of this paper ensure these different optimization problem formulations can be unified by defining the base optimization problem. Through three industry cases, the applications of the results are discussed.

Keywords

decision making; forecasting theory; optimisation; production planning; MAD index; MAPE index; RMSE index; decision processes; equivalent relationships; forecast accuracy; industry cases; optimization problem formulations; planning processes; Accuracy; Companies; Forecasting; Industries; Optimization; Time series analysis; Forecasting accuracy indices; optimal forecasting technology; optimization problem formulation;

fLanguage

English

Publisher

ieee

Conference_Titel

Industrial Engineering and Engineering Management (IEEM), 2011 IEEE International Conference on

Conference_Location

Singapore

ISSN

2157-3611

Print_ISBN

978-1-4577-0740-7

Electronic_ISBN

2157-3611

Type

conf

DOI

10.1109/IEEM.2011.6117889

Filename

6117889