• 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.

• Korean Management Science Review
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• v.29 no.1
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• pp.101-114
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• 2012

The demand for naval spare parts is intermittent and erratic. This feature, referred to as non-normal demand, makes forecasting difficult. Hierarchical forecasting using an aggregated time series can be more reliable to predict non-normal demand than direct forecasting. In practice the performance of hierarchical forecasting is not always superior to direct forecasting. The relative performance of the alternative forecasting methods depends on the demand features. This paper analyses the influence of the demand features on the performance of the alternative forecasting methods that use hierarchical and direct forecasting. Among various demand features variability, kurtosis, skewness and equipment groups are shown to significantly influence on the performance of the alternative forecasting methods.

• 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 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.

• Proceedings of the Korea Inteligent Information System Society Conference
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• 2001.01a
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• pp.156-163
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• 2001

Business forecasting is vital to the success of business. There has been an increasing demand for building business forecasting software system to assist human being to do forecasting. However, the uncertain and complex nature makes is a challenging work to analyze, design and implement software solutions for business forecasting. Traditional forecasting systems in which their models are trained based on small collection of historical data could not meet such challenges at the information explosion over the Internet. This paper presents an agent oriented business forecasting approach for building intelligent business forecasting software systems with high reusability. Although agents have been applied successfully to many application domains. little work has been reported to use the emerging agent oriented technology of this paper is that it explores how agent can be used to help human to manage various business forecasting processes in the whole business forecasting life cycle.

• 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
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• v.60 no.12
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• pp.2215-2220
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• 2011

The accurate short-term load forecasting is essential for the efficient power system operation and the system marginal price decision of the electricity market. So far, errors of load forecasting for Chuseok Holiday are very big compared with forecasting errors for the other special days. In order to improve the accuracy of load forecasting for Chuseok Holiday, selection of input data, the daily normalized load patterns and load forecasting model are investigated. The efficient data selection and daily normalized load pattern based on fuzzy linear regression model is proposed. The proposed load forecasting method for Chuseok Holiday is tested in recent 5 years from 2006 to 2010, and improved the accuracy of the load forecasting compared with the former research.

• 제어로봇시스템학회:학술대회논문집
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• 2005.06a
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• pp.2490-2495
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• 2005

The scheduling of plant should be determined based on the product demands correctly forecasted by reasonable methods. However, because most existing forecasting packages need user's knowledge about forecasting, it has been hard for plant engineers without forecasting knowledge to apply forecasted demands to scheduling. Therefore, a forecasting module has been developed for plant engineers without forecasting knowledge. In this study, for the development of the forecasting module, an automatic method using the ARIMA model that is framed from the modified Box-Jenkins process is proposed. And a new method for safety inventory determination is proposed to reduce the penalty cost by forecasting errors. Finally, using the two proposed methods, the web-based automatic module has been developed.

• The Transactions of The Korean Institute of Electrical Engineers
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• v.66 no.3
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• pp.493-499
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• 2017

This paper proposes a combined very-short-term and short-term multi-variate time-series model for 24 hour load forecasting. First, the best model for very-short-term and short-term load forecasting is selected by considering the least error value, and then they are combined by the optimal forecasting time. The actual load data of industry complex is used to show the effectiveness of the proposed model. As a result the load forecasting accuracy of the combined model has increased more than a single model for 24 hour load forecasting.

• 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.