{"id":22414,"date":"2025-04-14T21:34:21","date_gmt":"2025-04-14T21:34:21","guid":{"rendered":"https:\/\/www.tun.com\/home\/?p=22414"},"modified":"2025-04-14T21:34:23","modified_gmt":"2025-04-14T21:34:23","slug":"new-forecasting-model-provides-smarter-way-to-predict-customer-demand","status":"publish","type":"post","link":"https:\/\/www.tun.com\/home\/new-forecasting-model-provides-smarter-way-to-predict-customer-demand\/","title":{"rendered":"New Forecasting Model Provides Smarter Way to Predict Customer Demand"},"content":{"rendered":"\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-uagb-blockquote uagb-block-e7eb3fc3 uagb-blockquote__skin-border uagb-blockquote__stack-img-none\"><blockquote class=\"uagb-blockquote\"><div class=\"uagb-blockquote__content\">A research team at Washington State University has created a forecasting model to help businesses more accurately predict customer demand, even when vital data is missing. The new method promises to significantly optimize operations and improve decision-making across multiple industries.<br><\/div><footer><div class=\"uagb-blockquote__author-wrap uagb-blockquote__author-at-left\"><\/div><\/footer><\/blockquote><\/div>\n\n\n\n<div class=\"wp-block-group is-content-justification-space-between is-nowrap is-layout-flex wp-container-core-group-is-layout-b0ffac9c wp-block-group-is-layout-flex\"><div style=\"font-size:16px\" class=\"has-text-align-left wp-block-post-author\"><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\">The University Network<\/p><\/div><\/div>\n\n\n<div class=\"wp-block-uagb-social-share uagb-social-share__outer-wrap uagb-social-share__layout-horizontal uagb-block-ee584a31\">\n<div class=\"wp-block-uagb-social-share-child uagb-ss-repeater uagb-ss__wrapper uagb-block-ec619ce7\"><span class=\"uagb-ss__link\" data-href=\"https:\/\/www.facebook.com\/sharer.php?u=\" tabindex=\"0\" role=\"button\" aria-label=\"facebook\"><span class=\"uagb-ss__source-wrap\"><span class=\"uagb-ss__source-icon\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M504 256C504 119 393 8 256 8S8 119 8 256c0 123.8 90.69 226.4 209.3 245V327.7h-63V256h63v-54.64c0-62.15 37-96.48 93.67-96.48 27.14 0 55.52 4.84 55.52 4.84v61h-31.28c-30.8 0-40.41 19.12-40.41 38.73V256h68.78l-11 71.69h-57.78V501C413.3 482.4 504 379.8 504 256z\"><\/path><\/svg><\/span><\/span><\/span><\/div>\n\n\n\n<div class=\"wp-block-uagb-social-share-child uagb-ss-repeater uagb-ss__wrapper uagb-block-32d99934\"><span class=\"uagb-ss__link\" data-href=\"https:\/\/twitter.com\/share?url=\" tabindex=\"0\" role=\"button\" aria-label=\"twitter\"><span class=\"uagb-ss__source-wrap\"><span class=\"uagb-ss__source-icon\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 512 512\"><path d=\"M389.2 48h70.6L305.6 224.2 487 464H345L233.7 318.6 106.5 464H35.8L200.7 275.5 26.8 48H172.4L272.9 180.9 389.2 48zM364.4 421.8h39.1L151.1 88h-42L364.4 421.8z\"><\/path><\/svg><\/span><\/span><\/span><\/div>\n\n\n\n<div class=\"wp-block-uagb-social-share-child uagb-ss-repeater uagb-ss__wrapper uagb-block-1d136f14\"><span class=\"uagb-ss__link\" data-href=\"https:\/\/www.linkedin.com\/shareArticle?url=\" tabindex=\"0\" role=\"button\" aria-label=\"linkedin\"><span class=\"uagb-ss__source-wrap\"><span class=\"uagb-ss__source-icon\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M416 32H31.9C14.3 32 0 46.5 0 64.3v383.4C0 465.5 14.3 480 31.9 480H416c17.6 0 32-14.5 32-32.3V64.3c0-17.8-14.4-32.3-32-32.3zM135.4 416H69V202.2h66.5V416zm-33.2-243c-21.3 0-38.5-17.3-38.5-38.5S80.9 96 102.2 96c21.2 0 38.5 17.3 38.5 38.5 0 21.3-17.2 38.5-38.5 38.5zm282.1 243h-66.4V312c0-24.8-.5-56.7-34.5-56.7-34.6 0-39.9 27-39.9 54.9V416h-66.4V202.2h63.7v29.2h.9c8.9-16.8 30.6-34.5 62.9-34.5 67.2 0 79.7 44.3 79.7 101.9V416z\"><\/path><\/svg><\/span><\/span><\/span><\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Researchers at Washington State University (WSU) have unveiled an innovative forecasting model designed to help businesses more accurately predict customer demand, even in the absence of complete data. This breakthrough, <a href=\"https:\/\/journals.sagepub.com\/doi\/abs\/10.1177\/10591478251327753\" target=\"_blank\" rel=\"noopener\" title=\"\">published<\/a> in the journal Production and Operations Management, has the potential to transform how companies in various industries make critical operational and strategic decisions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Developed by Xinchang Wang, an assistant professor of operations management at WSU\u2019s Carson College of Business, and Weikun Xu, a doctoral student in management science at the same institution, the new model uses a mathematical approach to forecast customer interest with unprecedented accuracy.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMost businesses can only see part of the demand picture \u2014 they know who buys but not how many people considered buying and didn\u2019t,\u201d Wang said in a news release. \u201cOur model reconstructs the missing pieces, giving companies a more complete and reliable demand estimate.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Traditional forecasting methods often rely on broad assumptions, such as market share estimates, which can lead to inaccuracies in understanding customer behavior and missed revenue opportunities. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In contrast, Wang and Xu&#8217;s model estimates both sales and the total number of potential customers, even accounting for those who considered but ultimately decided against making a purchase.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using a computational technique known as the sequential minorization-maximization algorithm, the researchers were able to improve demand forecasting accuracy. This method eliminates the uncertainties that plague conventional forecasting by pinpointing the most reliable demand prediction from multiple possibilities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cBy eliminating uncertainty, businesses can make more confident pricing decisions,\u201d Wang added.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the researchers tested their model with airline ticket sales data, its design ensures applicability across various industries, according to Wang. For example, hotels could use it to predict future bookings, retail stores to estimate market demand and e-commerce platforms to understand shopping cart abandonment rates.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis model provides a powerful tool for industries where incomplete data has been a persistent challenge,\u201d added Wang. \u201cBy improving demand forecasting, businesses can plan more effectively, optimize operations and ultimately become more competitive.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The implications of this research are far-reaching. Accurate demand forecasting can lead to better inventory management, optimized pricing strategies and enhanced customer satisfaction, ultimately giving businesses a significant competitive edge.<\/p>\n\n\n\n<div style=\"height:18px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Source:<\/strong> <a href=\"https:\/\/news.wsu.edu\/press-release\/2025\/04\/14\/modeling-method-provides-smarter-way-to-predict-customer-demand\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Washington State University<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Researchers at Washington State University (WSU) have unveiled an innovative forecasting model designed to help businesses more accurately predict customer demand, even in the absence of complete data. This breakthrough, published in the journal Production and Operations Management, has the potential to transform how companies in various industries make critical operational and strategic decisions. Developed [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"single-no-separators","format":"standard","meta":{"_acf_changed":false,"_uag_custom_page_level_css":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[8],"tags":[132],"class_list":["post-22414","post","type-post","status-publish","format-standard","hentry","category-ai","tag-washington-state-university"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t<!-- All in One SEO 4.9.8 - aioseo.com -->\n\t<meta name=\"description\" content=\"Researchers have developed a new forecasting model that accurately predicts customer demand even with incomplete data, offering a game-changing tool for various industries.\" \/>\n\t<meta name=\"robots\" content=\"max-image-preview:large\" \/>\n\t<meta name=\"author\" content=\"The University Network\"\/>\n\t<link rel=\"canonical\" href=\"https:\/\/www.tun.com\/home\/new-forecasting-model-provides-smarter-way-to-predict-customer-demand\/\" \/>\n\t<meta name=\"generator\" content=\"All in One SEO (AIOSEO) 4.9.8\" \/>\n\t\t<meta property=\"og:locale\" content=\"en_US\" \/>\n\t\t<meta property=\"og:site_name\" content=\"TUN - 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This breakthrough, published in the journal Production and Operations Management, has the potential to transform how companies in various industries make critical operational and strategic decisions. Developed&hellip;","_links":{"self":[{"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/posts\/22414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/comments?post=22414"}],"version-history":[{"count":9,"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/posts\/22414\/revisions"}],"predecessor-version":[{"id":22462,"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/posts\/22414\/revisions\/22462"}],"wp:attachment":[{"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/media?parent=22414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/categories?post=22414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tun.com\/home\/wp-json\/wp\/v2\/tags?post=22414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}