Comparison of Forecasting Performance of ARIMA LSTM and HYBRID Models for The Sales Volume Budget of a Manufacturing Enterprise

This study aims to create a monthly sales quantity budget by making use of the previous income data of an enterprise operating within the construction sector, which is considered the locomotive of the economy. For estimating time-series of sales as a linear model ARIMA (Auto-Regressive Integrated Mo...

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Main Authors: Ayşe Soy Temür, Şule Yıldız
Format: Article
Language:English
Published: Istanbul University Press 2021-06-01
Series:Istanbul Business Research
Subjects:
Online Access:https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1538A115715044948E7A508C24D08BB4
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author Ayşe Soy Temür
Şule Yıldız
author_facet Ayşe Soy Temür
Şule Yıldız
author_sort Ayşe Soy Temür
collection DOAJ
description This study aims to create a monthly sales quantity budget by making use of the previous income data of an enterprise operating within the construction sector, which is considered the locomotive of the economy. For estimating time-series of sales as a linear model ARIMA (Auto-Regressive Integrated Moving Average), as nonlinear model LSTM (Long ShortTerm Memory) and a HYBRID (LSTM and ARIMA) model built to improve system performance compared to a single model was used. As a result of the study, Mean Square Error (MSE), Root Mean Square Error (RMSE), Mean Absolute Percentage Error (MAPE) and Mean Absolute Error (MAE) values obtained from each of the methods used in the application were compared, and a monthly sales volume budget was created for 2017 with all the methods used. When the MAPE and MSE values obtained from each of these methods were compared, the best performance was the Hybrid model that gave the lowest error, and in addition, the fact that all of the application models got very realistic results by using the historical data showed the success of the predictions.
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issn 2630-5488
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publishDate 2021-06-01
publisher Istanbul University Press
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series Istanbul Business Research
spelling doaj-art-516912eb91554112982ce2669733762f2025-08-20T02:10:42ZengIstanbul University PressIstanbul Business Research2630-54882021-06-01501154610.26650/ibr.2021.51.0117123456Comparison of Forecasting Performance of ARIMA LSTM and HYBRID Models for The Sales Volume Budget of a Manufacturing EnterpriseAyşe Soy Temür0https://orcid.org/0000-0003-4455-5035Şule Yıldız1https://orcid.org/0000-0002-4630-0637Düzce Üniversitesi, Duzce, TurkiyeSakarya Üniversitesi, Sakarya, TürkiyeThis study aims to create a monthly sales quantity budget by making use of the previous income data of an enterprise operating within the construction sector, which is considered the locomotive of the economy. For estimating time-series of sales as a linear model ARIMA (Auto-Regressive Integrated Moving Average), as nonlinear model LSTM (Long ShortTerm Memory) and a HYBRID (LSTM and ARIMA) model built to improve system performance compared to a single model was used. As a result of the study, Mean Square Error (MSE), Root Mean Square Error (RMSE), Mean Absolute Percentage Error (MAPE) and Mean Absolute Error (MAE) values obtained from each of the methods used in the application were compared, and a monthly sales volume budget was created for 2017 with all the methods used. When the MAPE and MSE values obtained from each of these methods were compared, the best performance was the Hybrid model that gave the lowest error, and in addition, the fact that all of the application models got very realistic results by using the historical data showed the success of the predictions.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1538A115715044948E7A508C24D08BB4sales budgettime series forecasthybrid modelarimalstm
spellingShingle Ayşe Soy Temür
Şule Yıldız
Comparison of Forecasting Performance of ARIMA LSTM and HYBRID Models for The Sales Volume Budget of a Manufacturing Enterprise
Istanbul Business Research
sales budget
time series forecast
hybrid model
arima
lstm
title Comparison of Forecasting Performance of ARIMA LSTM and HYBRID Models for The Sales Volume Budget of a Manufacturing Enterprise
title_full Comparison of Forecasting Performance of ARIMA LSTM and HYBRID Models for The Sales Volume Budget of a Manufacturing Enterprise
title_fullStr Comparison of Forecasting Performance of ARIMA LSTM and HYBRID Models for The Sales Volume Budget of a Manufacturing Enterprise
title_full_unstemmed Comparison of Forecasting Performance of ARIMA LSTM and HYBRID Models for The Sales Volume Budget of a Manufacturing Enterprise
title_short Comparison of Forecasting Performance of ARIMA LSTM and HYBRID Models for The Sales Volume Budget of a Manufacturing Enterprise
title_sort comparison of forecasting performance of arima lstm and hybrid models for the sales volume budget of a manufacturing enterprise
topic sales budget
time series forecast
hybrid model
arima
lstm
url https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/1538A115715044948E7A508C24D08BB4
work_keys_str_mv AT aysesoytemur comparisonofforecastingperformanceofarimalstmandhybridmodelsforthesalesvolumebudgetofamanufacturingenterprise
AT suleyıldız comparisonofforecastingperformanceofarimalstmandhybridmodelsforthesalesvolumebudgetofamanufacturingenterprise