Node-Level Financial Optimization in Demand Forecasting Through Dynamic Cost Asymmetry and Feedback Mechanism

Fuente: arXiv
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Autori principali: Casadei, Alessandro, Grupp, Clemens, Bhaduri, Sreyoshi, Guo, Lu, Fung, Wilson, Malshe, Rohit, Ratan, Raj, Pole, Ankush, Rakshit, Arkajit
Natura: Preprint
Pubblicazione: 2025
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author Casadei, Alessandro
Grupp, Clemens
Bhaduri, Sreyoshi
Guo, Lu
Fung, Wilson
Malshe, Rohit
Ratan, Raj
Pole, Ankush
Rakshit, Arkajit
author_facet Casadei, Alessandro
Grupp, Clemens
Bhaduri, Sreyoshi
Guo, Lu
Fung, Wilson
Malshe, Rohit
Ratan, Raj
Pole, Ankush
Rakshit, Arkajit
contents This work introduces a methodology to adjust forecasts based on node-specific cost function asymmetry. The proposed model generates savings by dynamically incorporating the cost asymmetry into the forecasting error probability distribution to favor the least expensive scenario. Savings are calculated and a self-regulation mechanism modulates the adjustments magnitude based on the observed savings, enabling the model to adapt to station-specific conditions and unmodeled factors such as calibration errors or shifting macroeconomic dynamics. Finally, empirical results demonstrate the model's ability to achieve \$5.1M annual savings.
format Preprint
id arxiv_https___arxiv_org_abs_2512_19722
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Node-Level Financial Optimization in Demand Forecasting Through Dynamic Cost Asymmetry and Feedback Mechanism
Casadei, Alessandro
Grupp, Clemens
Bhaduri, Sreyoshi
Guo, Lu
Fung, Wilson
Malshe, Rohit
Ratan, Raj
Pole, Ankush
Rakshit, Arkajit
Machine Learning
This work introduces a methodology to adjust forecasts based on node-specific cost function asymmetry. The proposed model generates savings by dynamically incorporating the cost asymmetry into the forecasting error probability distribution to favor the least expensive scenario. Savings are calculated and a self-regulation mechanism modulates the adjustments magnitude based on the observed savings, enabling the model to adapt to station-specific conditions and unmodeled factors such as calibration errors or shifting macroeconomic dynamics. Finally, empirical results demonstrate the model's ability to achieve \$5.1M annual savings.
title Node-Level Financial Optimization in Demand Forecasting Through Dynamic Cost Asymmetry and Feedback Mechanism
topic Machine Learning
url https://arxiv.org/abs/2512.19722