Encoding Seasonal Climate Predictions for Demand Forecasting with Modular Neural Network
Abstract
Current time-series forecasting problems use short-term weather attributes as exogenous inputs. However, in specific time-series forecasting solutions (e.g., demand prediction in the supply chain), seasonal climate predictions are crucial to improve its resilience. Representing mid to long-term seasonal climate forecasts is challenging as seasonal climate predictions are uncertain, and encoding spatio-temporal relationship of climate forecasts with demand is complex. We propose a novel modeling framework that efficiently encodes seasonal climate predictions to provide robust and reliable time-series forecasting for supply chain functions. The encoding framework enables effective learning of latent representations -- be it uncertain seasonal climate prediction or other time-series data (e.g., buyer patterns) -- via a modular neural network architecture. Our extensive experiments indicate that learning such representations to model seasonal climate forecast results in an error reduction of approximately 13\% to 17\% across multiple real-world data sets compared to existing demand forecasting methods.
Cite
@article{arxiv.2309.02248,
title = {Encoding Seasonal Climate Predictions for Demand Forecasting with Modular Neural Network},
author = {Smit Marvaniya and Jitendra Singh and Nicolas Galichet and Fred Ochieng Otieno and Geeth De Mel and Kommy Weldemariam},
journal= {arXiv preprint arXiv:2309.02248},
year = {2023}
}
Comments
15 pages