Demand Forecasting Method Based on Stochastic Processes and Its Validation Using Real-World Data

Yinggao Zheng, Hiroshi Suito, Hideo Kawarada

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)

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 using application of the Black-Scholes model incorporating stochastic processes used in financial engineering for option pricing. Through numerical experiments using real-world data, the proposed model is demonstrated to be effective.

Original languageEnglish
Title of host publicationComputational Methods in Applied Sciences
PublisherSpringer Netherland
Pages147-160
Number of pages14
DOIs
Publication statusPublished - 2010 Jan 1
Externally publishedYes

Publication series

NameComputational Methods in Applied Sciences
Volume15
ISSN (Print)1871-3033

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Modelling and Simulation
  • Biomedical Engineering
  • Computer Science Applications
  • Fluid Flow and Transfer Processes
  • Computational Mathematics
  • Electrical and Electronic Engineering

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