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ARTÍCULO
TITULO

Investigating the Accuracy of Autoregressive Recurrent Networks Using Hierarchical Aggregation Structure-Based Data Partitioning

José Manuel Oliveira and Patrícia Ramos    

Resumen

Global models have been developed to tackle the challenge of forecasting sets of series that are related or share similarities, but they have not been developed for heterogeneous datasets. Various methods of partitioning by relatedness have been introduced to enhance the similarities of sets, resulting in improved forecasting accuracy but often at the cost of a reduced sample size, which could be harmful. To shed light on how the relatedness between series impacts the effectiveness of global models in real-world demand-forecasting problems, we perform an extensive empirical study using the M5 competition dataset. We examine cross-learning scenarios driven by the product hierarchy commonly employed in retail planning to allow global models to capture interdependencies across products and regions more effectively. Our findings show that global models outperform state-of-the-art local benchmarks by a considerable margin, indicating that they are not inherently more limited than local models and can handle unrelated time-series data effectively. The accuracy of data-partitioning approaches increases as the sizes of the data pools and the models? complexity decrease. However, there is a trade-off between data availability and data relatedness. Smaller data pools lead to increased similarity among time series, making it easier to capture cross-product and cross-region dependencies, but this comes at the cost of a reduced sample, which may not be beneficial. Finally, it is worth noting that the successful implementation of global models for heterogeneous datasets can significantly impact forecasting practice.

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