Comparing Statistical and Machine Learning Methods for Time Series Forecasting in Data-Driven Logistics - A Simulation Study

Many planning and decision activities in logistics and supply chain management are based on forecasts of multiple time dependent factors. Therefore, the quality of planning depends on the quality of the forecasts. We compare different state-of-the-art forecasting methods in terms of forecasting performance. Differently from most existing research in logistics, we do not perform this in a case-dependent way but consider a broad set of simulated time series to give more general recommendations. We therefore simulate various linear and nonlinear time series that reflect different situations. Our simulation results showed that the machine learning methods, especially Random Forests, performed particularly well in complex scenarios, with the differentiated time series training significantly improving the robustness of the model. In addition, the time series approaches proved to be competitive in low noise scenarios.