Article
Licensed
Unlicensed
Requires Authentication
Validation of a demand forecasting method based on a stochastic process using real-world data
-
Y. Zheng
Published/Copyright:
June 21, 2010
Abstract
Demand-forecasting problems frequently arise in logistics and supply chain management. The Newsboy problem is one such problem. In this paper, we present an improved solution method by application of the Black–Scholes model incorporating a stochastic process used in financial engineering for option pricing. The proposed model is shown to be effective through numerical experiments using real-world data.
Keywords:: demand prediction; stochastic process; Newsboy problem; Black–Scholes model; loss evaluation
Received: 2009-08-19
Revised: 2010-01-18
Published Online: 2010-06-21
Published in Print: 2010-June
© de Gruyter 2010
You are currently not able to access this content.
You are currently not able to access this content.
Articles in the same Issue
- Hierarchical quadrature for multidimensional singular integrals
- A posteriori error majorants for approximations of the evolutionary Stokes problem
- Localised FE-analysis of Strang's problem based on Lagrange techniques
- Validation of a demand forecasting method based on a stochastic process using real-world data
Keywords for this article
demand prediction;
stochastic process;
Newsboy problem;
Black–Scholes model;
loss evaluation
Articles in the same Issue
- Hierarchical quadrature for multidimensional singular integrals
- A posteriori error majorants for approximations of the evolutionary Stokes problem
- Localised FE-analysis of Strang's problem based on Lagrange techniques
- Validation of a demand forecasting method based on a stochastic process using real-world data
