New PDF release: Adaptive Business Intelligence

By Zbigniew Michalewicz

Adaptive enterprise intelligence structures mix prediction and optimization ideas to help selection makers in advanced, quickly altering environments. those platforms tackle basic questions: what's prone to ensue sooner or later? what's the most sensible plan of action? Adaptive company Intelligence explores parts of information mining, predictive modeling, forecasting, optimization, and flexibility. The e-book explains the appliance of various prediction and optimization options, and exhibits how those strategies can be utilized to boost adaptive structures. assurance contains linear regression, time-series forecasting, choice timber and tables, man made neural networks, genetic programming, fuzzy platforms, genetic algorithms, simulated annealing, tabu seek, ant structures, and agent-based modeling.

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For this reason, a straight line need not represent the “1 to 10 cars” part of the graph. Furthermore, if we want to transport 11 cars, then we will experience a “jump” in cost: We will pay $700 for 10 cars on the first truck, plus $250 for a single car on the second truck (for a total of $950). Because most transportation companies have trucks of different shapes and sizes (which can hold different amounts of cars), a more realistic transportation cost model may look something like (again, we assume fixed locations for “to” and “from”): x x x x 16 cars: $120 per car.

If the adaptability module updates the prediction module every week by using a rolling time window, then the prediction module can adapt to changes in the sale prices. Alternatively, imagine that the prediction module has certain rules that can be expressed as follows: if [Make = Honda] and [Model = Accord] and [Color = white] and [40,000 < Mileage < 50,000] and [Year = 2000] and [Damage Level = $0], then Sale Price = $11,384. 5 The Structure of an Adaptive Business Intelligence System 45 Each of these rules has a weight,15 and the weights of rules can be modified (say, on a weekly basis) to tune the predictions in a changing environment.

So, what is the problem? Well, simply put, the problem is that the above approach does not work very well. To see why, we have to delve a little deeper into the problem. 4 Transportation When we ship an entire truckload of cars from one place to another, we get a cheaper rate per car than if we send only one car (or a few cars) at a time. This occurs because the major component of the transportation cost is the truck, and it is of lesser importance how many cars are actually on the truck. 4 Transportation 31 Given the above model, the cost for sending a single car from one location to another is $250, but the cost of sending two cars is “only” $300 (note that the cost per car is then $150).

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