IDEAS home Printed from https://ideas.repec.org/a/ags/ajaees/357316.html

Estimation of Annual Industrial Wood Production Level in Forestry Operations with the Artificial Neural Network

Author

Listed:
  • Atik, Atilla
  • Aslan, Fürüzan

Abstract

Numerous methods have been developed for estimating the production levels of forestry operations. Although these methods are classified in different ways in literature, they are fundamentally divided into two methods i.e. the quantitative and the qualitative method. In estimation studies, one of the alternative methods used instead of the traditional one is the Artificial Neural Network (ANN). In this study, we attempted to determine the utility of the ANN method in predicting the industrial wood production yield in forestry operations according to the allowable cut. In this context, we utilized a set of variables described in the literature as influencing industrial wood production yield relative to allowable cut. These variables, which can all be measured on the basis of production units, were organized in 3 main groups; the general conditions of the stand, the natural structure of the production unit, and the production methods and tools. Using this set of variables and the Multi-Layer Perceptron (MLP) technique, various ANN models were developed for testing different degrees of learning and momentum coefficients. Based on the estimations performed within the scope of this study with different ANN models, we were able to identify the model which provided predictive values closest to the real values during percentage of yield estimations. During the study, it was determined that the model which performed estimations for the industrial wood yield percentage at the Günye Forestry Operations Directorate that were the closest to the actual values, with a MAPE value of 5.3%, which was the multilayered ANN model with 26 input variables, 8 neurons, 0.4 degrees of learning, and a 0.8 momentum coefficient. The error rate for the total yield percentage of the 10 production units used for testing purposes in the model was 1.7%, which is a fairly low and acceptable value. Based on these results, it is possible to state that ANN applications and models have an important potential value for use in the estimation of the yield percentage relative to allowable cut forestry operations.

Suggested Citation

  • Atik, Atilla & Aslan, Fürüzan, 2015. "Estimation of Annual Industrial Wood Production Level in Forestry Operations with the Artificial Neural Network," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 7(4).
  • Handle: RePEc:ags:ajaees:357316
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/357316/files/Atik742015AJAEES20028.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Balakrishnan, P. V. (Sundar) & Cooper, Martha C. & Jacob, Varghese S. & Lewis, Phillip A., 1996. "Comparative performance of the FSCL neural net and K-means algorithm for market segmentation," European Journal of Operational Research, Elsevier, vol. 93(2), pages 346-357, September.
    2. Kar Yan Tam & Melody Y. Kiang, 1992. "Managerial Applications of Neural Networks: The Case of Bank Failure Predictions," Management Science, INFORMS, vol. 38(7), pages 926-947, July.
    3. Altman, Edward I. & Marco, Giancarlo & Varetto, Franco, 1994. "Corporate distress diagnosis: Comparisons using linear discriminant analysis and neural networks (the Italian experience)," Journal of Banking & Finance, Elsevier, vol. 18(3), pages 505-529, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matthew Smith & Francisco Alvarez, 2022. "Predicting Firm-Level Bankruptcy in the Spanish Economy Using Extreme Gradient Boosting," Computational Economics, Springer;Society for Computational Economics, vol. 59(1), pages 263-295, January.
    2. Zhou, Fanyin & Fu, Lijun & Li, Zhiyong & Xu, Jiawei, 2022. "The recurrence of financial distress: A survival analysis," International Journal of Forecasting, Elsevier, vol. 38(3), pages 1100-1115.
    3. Haider A. Khan, 2002. "Can Banks Learn to Be Rational?," CIRJE F-Series CIRJE-F-151, CIRJE, Faculty of Economics, University of Tokyo.
    4. Greta Falavigna, 2006. "Models for Default Risk Analysis: Focus on Artificial Neural Networks, Model Comparisons, Hybrid Frameworks," CERIS Working Paper 200610, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    5. Beynon, Malcolm J. & Peel, Michael J., 2001. "Variable precision rough set theory and data discretisation: an application to corporate failure prediction," Omega, Elsevier, vol. 29(6), pages 561-576, December.
    6. Zhang, Guoqiang & Y. Hu, Michael & Eddy Patuwo, B. & C. Indro, Daniel, 1999. "Artificial neural networks in bankruptcy prediction: General framework and cross-validation analysis," European Journal of Operational Research, Elsevier, vol. 116(1), pages 16-32, July.
    7. Haider A. Khan, 2004. "General Conclusions: From Crisis to a Global Political Economy of Freedom," Palgrave Macmillan Books, in: Global Markets and Financial Crises in Asia, chapter 9, pages 193-211, Palgrave Macmillan.
    8. Arthur Charpentier & Emmanuel Flachaire & Antoine Ly, 2017. "Econom\'etrie et Machine Learning," Papers 1708.06992, arXiv.org, revised Mar 2018.
    9. Adam Fadlalla & Chien-Hua Lin, 2001. "An Analysis of the Applications of Neural Networks in Finance," Interfaces, INFORMS, vol. 31(4), pages 112-122, August.
    10. Tseng, Chih-Hsiung & Cheng, Sheng-Tzong & Wang, Yi-Hsien & Peng, Jin-Tang, 2008. "Artificial neural network model of the hybrid EGARCH volatility of the Taiwan stock index option prices," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(13), pages 3192-3200.
    11. repec:hum:wpaper:sfb649dp2013-037 is not listed on IDEAS
    12. Mark T. Leung & An-Sing Chen, 2005. "Performance evaluation of neural network architectures: the case of predicting foreign exchange correlations," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 24(6), pages 403-420.
    13. Philippe Paquet, 1997. "L'utilisation des réseaux de neurones artificiels en finance," Working Papers 1997-1, Laboratoire Orléanais de Gestion - université d'Orléans.
    14. Wolfgang Härdle & Yuh-Jye Lee & Dorothea Schäfer & Yi-Ren Yeh, 2009. "Variable selection and oversampling in the use of smooth support vector machines for predicting the default risk of companies," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 28(6), pages 512-534.
    15. Jones, Stewart & Johnstone, David & Wilson, Roy, 2015. "An empirical evaluation of the performance of binary classifiers in the prediction of credit ratings changes," Journal of Banking & Finance, Elsevier, vol. 56(C), pages 72-85.
    16. Sanjeev Mittal & Pankaj Gupta & K. Jain, 2011. "Neural network credit scoring model for micro enterprise financing in India," Qualitative Research in Financial Markets, Emerald Group Publishing Limited, vol. 3(3), pages 224-242, October.
    17. Fayçal Mraihi, 2016. "Distressed Company Prediction Using Logistic Regression: Tunisian’s Case," Quarterly Journal of Business Studies, Research Academy of Social Sciences, vol. 2(1), pages 34-54.
    18. Catalin-Emanuel CIOBOTA & Manuela-Violeta TUREATCA, 2022. "Prediction of Business Bankruptcy with the Help of Extreme Gradient Increase," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 178-185.
    19. Amarda Cano, 2021. "Evolution of Public Debt in Albania during 1990-2017 and its impact on the Economic Growth," European Journal of Marketing and Economics Articles, Revistia Research and Publishing, vol. 4, ejme_v4_i.
    20. Nandita Mishra & Shruti Ashok & Deepak Tandon, 2024. "Predicting Financial Distress in the Indian Banking Sector: A Comparative Study Between the Logistic Regression, LDA and ANN Models," Global Business Review, International Management Institute, vol. 25(6), pages 1540-1558, December.
    21. Runchi Zhang & Zhiyi Qiu, 2020. "Optimizing hyper-parameters of neural networks with swarm intelligence: A novel framework for credit scoring," PLOS ONE, Public Library of Science, vol. 15(6), pages 1-35, June.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ajaees:357316. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://journalajaees.com/index.php/AJAEES/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.