Application of Grey-Markov Model in Order Forecasting of Distribution Center

The quickly changing market advances higher requirement for distribution center. It is pivotal for improving the flexibility and competence of distribution center to operate the distribution center according to the order, which represents the customers´ demand. Therefore, the precise order forecasting is very important for distribution center. Because the influencing factors of order forecasting are indeterminate, it leads to a big discrepancy between the order forecasting and the reality. This paper has established and applied grey-markov model, which unifies the GM (1, 1) model and the Markov process model, to forecast the order in distribution center. The forecasting result of actual order data demonstrates the forecasting result of grey-markov model is fair accurate and well applicable.