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Cross-Temporal Forecast Reconciliation at Digital Platforms with Machine Learning

Jeroen Rombouts, Marie Ternes, Ines Wilms

arXiv 14 Feb 2024 · Econometrics · publishedInternational Journal of Forecasting (2024) · 11 citations (OpenAlex)

arXiv:2402.09033 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Platform businesses operate on a digital core and their decision making requires high-dimensional accurate forecast streams at different levels of cross-sectional (e.g., geographical regions) and temporal aggregation (e.g., minutes to days). It also necessitates coherent forecasts across all levels of the hierarchy to ensure aligned decision making across different planning units such as pricing, product, controlling and strategy. Given that platform data streams feature complex characteristics and interdependencies, we introduce a non-linear hierarchical forecast reconciliation method that produces cross-temporal reconciled forecasts in a direct and automated way through the use of popular machine learning methods. The method is sufficiently fast to allow forecast-based high-frequency decision making that platforms require. We empirically test our framework on unique, large-scale streaming datasets from a leading on-demand delivery platform in Europe and a bicycle sharing system in New York City.

Citation extraction

56
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75
in-text mentions
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main-text words

appendix boundary found by appendix_command · 83% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Athanasopoulos, G., Hyndman, R. J., Kourentzes, N., and Panagiotelis… (2024) Forecast reconciliation: A review0.92843100%
2Spiliotis, E., Abolghasemi, M., Hyndman, R. J., Petropoulos, F., and… (2021) Hierarchical forecast reconciliation with machine learning0.9209478%
3Di Fonzo, T. and Girolimetto, D (2023) Cross-temporal forecast reconciliation: Optimal combination method and heuristic alternatives0.87452100%
4Makridakis, S., Spiliotis, E., and Assimakopoulos, V (2022) M5 accuracy competition: Results, findings, and conclusions0.73732100%
5Kourentzes, N. and Athanasopoulos, G (2019) Cross-temporal coherent forecasts for Australian tourism0.64422100%
6Januschowski, T., Wang, Y., Torkkola, K., Erkkilä, T., Hasson, H., a… (2022) Forecasting with trees0.51121100%
7Athanasopoulos, G., Hyndman, R. J., Kourentzes, N., and Panagiotelis… (2024) Editorial: Innovations in hierarchical forecasting0.40511100%
8Di Fonzo, T. and Girolimetto, D (2024) Forecast combination-based forecast reconciliation: Insights and extensions0.40511100%
9Girolimetto, D. and Di Fonzo, T (2023) FoReco: Point Forecast Reconciliation0.40511100%
10Girolimetto, D., Athanasopoulos, G., Di Fonzo, T., and Hyndman, R. J (2023) Cross-temporal probabilistic forecast reconciliation: Methodological and practical issues0.40511100%

Showing the top 10 of 56 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Hierarchical Regularizers for Reverse Unrestricted Mixed Data Sampling Regressions0.40511