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        Trend Forecast for Drugstores by using FMD Analysis, Wavelet-based Clustering, and a State-space Model

        Kaito Oshiro,Takeo Okazaki 대한전자공학회 2018 IEIE Transactions on Smart Processing & Computing Vol.7 No.1

        This research forecasts order trends for drugstores based on order history datasets. Frequency–monetary–distance (FMD) analysis, merchandise clustering, and a modified model selection criterion are used to improve forecast accuracy. FMD analysis is a store classification method that is used for considering accessibility to the store as one of its characteristics. Merchandise clustering uses a wavelet transform aimed at finding the common order trends in products from the order history. The modified model selection criterion is intended to provide forecast models that reduce either underestimated or overestimated errors. Our verification results show that FMD analysis provides forecasts with fewer errors for most products, compared to the classification method without considering accessibility. Wavelet-based clustering reduces forecast errors depending on mother wavelets. The modified model selection criterion also reduces underestimated or overestimated errors.

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