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By Zbigniew Michalewicz

Adaptive company intelligence structures mix prediction and optimization innovations to aid determination makers in complicated, quickly altering environments. those structures tackle primary questions: what's prone to take place sooner or later? what's the most sensible plan of action? Adaptive enterprise Intelligence explores parts of knowledge mining, predictive modeling, forecasting, optimization, and suppleness. The publication explains the applying of diverse prediction and optimization recommendations, and indicates how those innovations can be utilized to strengthen adaptive platforms. assurance comprises linear regression, time-series forecasting, selection timber and tables, man made neural networks, genetic programming, fuzzy platforms, genetic algorithms, simulated annealing, tabu seek, ant platforms, and agent-based modeling.

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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).

Well, the prediction module would have to “learn” to predict the sale price based on the historical sales data for all Honda Accords at the auction site in Northern California. 3 Optimization 43 Let us also assume that our (very basic) prediction module “predicts” the sale price for each make/model at each auction site by looking at the average sale prices for the previous week (hence, it does not take into account the actual mileage, color, or other variables). It is interesting to note, however, that creating even a basic prediction module such as this presents many difficulties.

And that is not all. Note that it takes some time to transport a car to a specific auction site. The truck has to drive to the pick-up location, load the car, pick up some additional cars (possibly somewhere close by), and then, finally, drive the cars to the assigned auction site. This process can take two weeks (or longer for shipments from the East Coast to the West Coast), and during this time the prices might change at the auction site. Hence, we have to predict the sale price for each car a couple of weeks ahead of time, and take into account seasonality and other changes in the market.

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