Forecasting inter-urban transport demand for a logistics company: A combined grey–periodic extension model with remnant correction

Abstract

Accurately predicting short-term transport demand for an individual logistics company involved in a competitive market is critical to make short-term operation decisions. This article proposes a combined grey-periodic extension model with remnant correction to forecast the short-term inter-urban transport demand of a logistics company involved in a nationwide competitive market, showing changes in trend and seasonal fluctuations with irregular periods different to the macroeconomic cycle. A basic grey-periodic extension model of an additive pattern, namely, the main combination model, is first constructed to fit the changing trends and the featured seasonal fluctuation periods. In order to improve prediction accuracy and model adaptability, the grey model is repeatedly modelled to fit the remnant tail time series of the main combination model until prediction accuracy is satisfied. The modelling approach is applied to a logistics company engaged in a nationwide less-than-truckload road transportation business in China. The results demonstrate that the proposed modelling approach produces good forecasting results and goodness of fit, also showing good model adaptability to the analysed object in a changing macro environment. This fact makes this modelling approach an option to analyse the short-term transportation demand of an individual logistics company.

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