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arXiv · 2009.03262

An industry case of large-scale demand forecasting of hierarchical components

Rodrigo Rivera-Castro·Ivan Nazarov·Yuke Xiang·Ivan Maksimov·Aleksandr Pletnev·Evgeny Burnaev
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Abstract

Demand forecasting of hierarchical components is essential in manufacturing. However, its discussion in the machine-learning literature has been limited, and judgemental forecasts remain pervasive in the industry. Demand planners require easy-to-understand tools capable of delivering state-of-the-art results. This work presents an industry case of demand forecasting at one of the largest manufacturers of electronics in the world. It seeks to support practitioners with five contributions: (1) A benchmark of fourteen demand forecast methods applied to a relevant data set, (2) A data transformation technique yielding comparable results with state of the art, (3) An alternative to ARIMA based on matrix factorization, (4) A model selection technique based on topological data analysis for time series and (5) A novel data set. Organizations seeking to up-skill existing personnel and increase forecast accuracy will find value in this work.

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Rodrigo Rivera-Castro, Ivan Nazarov, Yuke Xiang, Ivan Maksimov, Aleksandr Pletnev, Evgeny Burnaev. 2020-09-07. An industry case of large-scale demand forecasting of hierarchical components. https://doi.org/10.1109/icmla.2019.00029

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