USE OF TIME SERIES IN DEMAND FORECASTING

We have implemented the neural network model for the time series prediction of our sales. Time series analysis serves as the basis for the demand forecast. In this type of model, tracking selected independent variables over a defined period enables forecasting predictable fluctuations in demand according to a prevailing trend, such as peak versus low periods. We decided time series forecasting technique using neural network approach because of the following pros: Lightweight Easier to analyze segments Most data is captured (historical data factors in the most important variables) Reliance on own company history instead of multiple external data sources, which reduces the risk of breakdowns in data Repeatability over days and weeks How we used time series in our problem of sales forecast? We framed time series as a supervised learning problem. Given a sequence of numbers for a time series dataset, we can restructure the data to look like a supervised learning problem. We can do this by using previous time steps as input variables and use the next time step as the output variable. The use of prior time steps to predict the next time step is called the sliding window method. For eg: we considered a window of size = 29 so that the sales data from the last 29 days and the present day are recorded as prior inputs and the sales of any day specified by the lag parameter can be calculated for e.g.:sales (t +90) i.e., sales forecast for a day 90 days ahead from present date. ——– by Sharadia Choudhury

Leave a comment

Related Posts

Machine learning models

“No machine learning model is valuable, unless it’s deployed to production.” – Luigi Patruno   The machine learning models are being used to achieve many difficult

Read More »
Product Manager Intern

Do you have a passionate dedication to your craft and a desire to work with peers that inspire you on a daily basis? Do you

Read More »
Content Writer Intern

Do you have a passion for writing and an innovative ability to create successful marketing campaigns and aid in creating company growth? If so, Ismile Technology is

Read More »

Contact us for a quote, help, or to join the team.

email

service@iSmileTechnologies.com

phone

(732) 347-6245

About Us

iSmile Technologies is a global technology services company.

service@iSmileTechnologies.com
(732) 347-6245

USA

+1 (732) 347-6245
241 Jonathan Way
Bolingbrook, IL 60490

INDIA

2-3-285, Secunderabad Hyderabad 500003

CANADA

3190 Stocksbridge Ave
Oakville, ON L6M 0A7