Two levels ARIMAX and regression models for forecasting time series data with calendar variation effects

Suhartono*, Muhammad Hisyam Lee, Dedy Dwi Prastyo

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

21 Citations (Scopus)

Abstract

The aim of this research is to develop a calendar variation model for forecasting retail sales data with the Eid ul-Fitr effect. The proposed model is based on two methods, namely two levels ARIMAX and regression methods. Two levels ARIMAX and regression models are built by using ARIMAX for the first level and regression for the second level. Monthly men's jeans and women's trousers sales in a retail company for the period January 2002 to September 2009 are used as case study. In general, two levels of calendar variation model yields two models, namely the first model to reconstruct the sales pattern that already occurred, and the second model to forecast the effect of increasing sales due to Eid ul-Fitr that affected sales at the same and the previous months. The results show that the proposed two level calendar variation model based on ARIMAX and regression methods yields better forecast compared to the seasonal ARIMA model and Neural Networks.

Original languageEnglish
Title of host publicationInnovation and Analytics Conference and Exhibition, IACE 2015
Subtitle of host publicationProceedings of the 2nd Innovation and Analytics Conference and Exhibition
EditorsNazihah Ahmad, Jafri Zulkepli, Adyda Ibrahim, Nazrina Aziz, Syariza Abdul-Rahman
PublisherAmerican Institute of Physics Inc.
ISBN (Electronic)9780735413382
DOIs
Publication statusPublished - 11 Dec 2015
Event2nd Innovation and Analytics Conference and Exhibition, IACE 2015 - Alor Setar, Kedah, Malaysia
Duration: 29 Sept 20151 Oct 2015

Publication series

NameAIP Conference Proceedings
Volume1691
ISSN (Print)0094-243X
ISSN (Electronic)1551-7616

Conference

Conference2nd Innovation and Analytics Conference and Exhibition, IACE 2015
Country/TerritoryMalaysia
CityAlor Setar, Kedah
Period29/09/151/10/15

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