XRMDN: An Extended Recurrent Mixture Density Network for Short-Term Probabilistic Rider Demand Forecasting with High Volatility
This provides a robust probabilistic forecasting tool for Mobility-on-Demand systems to enhance operational efficiency and customer satisfaction, though it appears incremental as an extension of existing mixture density networks.
The paper tackles the problem of short-term probabilistic rider demand forecasting in Mobility-on-Demand systems, which suffers from high volatility, by proposing the XRMDN model; it demonstrates that XRMDN surpasses existing benchmarks in real-world datasets, excelling in high-volatility scenarios.
In the realm of Mobility-on-Demand (MoD) systems, the forecasting of rider demand is a cornerstone for operational decision-making and system optimization. Traditional forecasting methodologies primarily yield point estimates, thereby neglecting the inherent uncertainty within demand projections. Moreover, MoD demand levels are profoundly influenced by both endogenous and exogenous factors, leading to high and dynamic volatility. This volatility significantly undermines the efficacy of conventional time series forecasting methods. In response, we propose an Extended Recurrent Mixture Density Network (XRMDN), a novel deep learning framework engineered to address these challenges. XRMDN leverages a sophisticated architecture to process demand residuals and variance through correlated modules, allowing for the flexible incorporation of endogenous and exogenous data. This architecture, featuring recurrent connections within the weight, mean, and variance neural networks, adeptly captures demand trends, thus significantly enhancing forecasting precision, particularly in high-volatility scenarios. Our comprehensive experimental analysis, utilizing real-world MoD datasets, demonstrates that XRMDN surpasses the existing benchmark models across various metrics, notably excelling in high-demand volatility contexts. This advancement in probabilistic demand forecasting marks a significant contribution to the field, offering a robust tool for enhancing operational efficiency and customer satisfaction in MoD systems.