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Modeling product sales with uncertain differential equation: an application to Meituan

Author

Listed:
  • Haoxuan Li

    (University of International Business and Economics)

  • Jianlin He

    (Meituan)

  • Qi Zhang

    (University of International Business and Economics)

  • Chuanmei Zhang

    (Meituan)

  • Wusheng Wang

    (Meituan)

  • Xianshuai Cao

    (Meituan)

  • Tongjie Zhang

    (Meituan)

  • Xiangfeng Yang

    (University of International Business and Economics)

Abstract

Modeling and predicting product sales is pivotal for the sustained growth of firms. Machine learning models often necessitate extensive datasets with diverse features. This requirement poses significant challenges in the case of data scarcity and prevalent missing values. Uncertain differential equations demonstrate enhanced capability in modeling datasets with limited size and offer a good interpretation on product sales fluctuations. Therefore, this study models product sales using uncertain differential equations. Initially, we employ rolling window cross-validation to select the most appropriate uncertain differential equation. Then, parameter estimation is conducted using the least squares method, followed by validation of the fitted uncertain differential equation through an uncertain hypothesis test. Finally, comparisons with alternative models highlight the advantages of the uncertain differential equation on predicting product sales.

Suggested Citation

  • Haoxuan Li & Jianlin He & Qi Zhang & Chuanmei Zhang & Wusheng Wang & Xianshuai Cao & Tongjie Zhang & Xiangfeng Yang, 2025. "Modeling product sales with uncertain differential equation: an application to Meituan," Fuzzy Optimization and Decision Making, Springer, vol. 24(2), pages 271-292, June.
    • Handle: RePEc:spr:fuzodm:v:24:y:2025:i:2:d:10.1007_s10700-025-09446-0
    DOI: 10.1007/s10700-025-09446-0
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    References listed on IDEAS

    as
    1. Shukai Li & Jianxiong Zhang & Wansheng Tang, 2015. "Joint dynamic pricing and inventory control policy for a stochastic inventory system with perishable products," International Journal of Production Research, Taylor & Francis Journals, vol. 53(10), pages 2937-2950, May.
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