Research article Special Issues

BOMD: Building Optimization Models from Data (Neural Networks based Approach)

  • This article aims to develop mathematical methods and algorithms that automatically build nonlinear models of planning and management of economic objects based on the use of empirical samples (observations). We call the relevant new information technology "Building Optimization Models from Data (BOMD)". The offered technology BOMD allows to obtain an objective control models that reflect the real economic processes. This is its main advantage over commonly employed subjective approach to management. To solve the problems posed in the article, the methods of artificial intelligence were used, in particular, the training of neural networks and construction of decision trees. If the learning sample contains simultaneously the values of the objective function and the values of characteristic function of constraints, it is proposed to use an approach based on the training of two neural networks: NN1 - for the synthesis of the objective function and NN2 - for the synthesis of the approximating characteristic function of constraints (instead of a neural network NN2, a decision tree can be used). The solution of the problem presented by such synthesized neural model may end up finding, generally speaking, a local conditional extremum. To find the global extremum of the multiextremal neural objective function, a heuristic algorithm based on a preliminary classification of the search area by using the decision tree is developed. Presented in the paper approach to an extraction of conditionally optimization model from the data for the case when there is no information on the points not belonging to the set of admissible solutions is fundamentally novel. In this case, a heuristic algorithm for approximating the region of admissible solutions based on the allocation of regular (non-random) empty segments of the search area is developed.

    Citation: Vladimir Donskoy. BOMD: Building Optimization Models from Data (Neural Networks based Approach)[J]. Quantitative Finance and Economics, 2019, 3(4): 608-623. doi: 10.3934/QFE.2019.4.608

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  • This article aims to develop mathematical methods and algorithms that automatically build nonlinear models of planning and management of economic objects based on the use of empirical samples (observations). We call the relevant new information technology "Building Optimization Models from Data (BOMD)". The offered technology BOMD allows to obtain an objective control models that reflect the real economic processes. This is its main advantage over commonly employed subjective approach to management. To solve the problems posed in the article, the methods of artificial intelligence were used, in particular, the training of neural networks and construction of decision trees. If the learning sample contains simultaneously the values of the objective function and the values of characteristic function of constraints, it is proposed to use an approach based on the training of two neural networks: NN1 - for the synthesis of the objective function and NN2 - for the synthesis of the approximating characteristic function of constraints (instead of a neural network NN2, a decision tree can be used). The solution of the problem presented by such synthesized neural model may end up finding, generally speaking, a local conditional extremum. To find the global extremum of the multiextremal neural objective function, a heuristic algorithm based on a preliminary classification of the search area by using the decision tree is developed. Presented in the paper approach to an extraction of conditionally optimization model from the data for the case when there is no information on the points not belonging to the set of admissible solutions is fundamentally novel. In this case, a heuristic algorithm for approximating the region of admissible solutions based on the allocation of regular (non-random) empty segments of the search area is developed.


    Creating this inaugural special issue on Engineering Applications of Artificial Intelligence (AI) is important due to the rapid technology advancement and the aim to reduce the manpower by incorporating Artificial Intelligence in various Industry 4.0 applications. As my research reflects the multi-disciplinarily of systems (consisting of mechanical, electrical, electronics, acoustical and marine engineering) from initial concepts to the modelling and AI simulation, creating graphical-user interface and their actual implementations and testing on sites. The special issue provides a good platform to share applied research results from different researchers around the world.

    For example, the phase partition-based ensemble learning framework upon least squares supports vector regression (LSSVR) was used for soft sensor modeling to improve the prediction accuracy in chemical and biological processes. As a result, the robotic grasping based on improved Gaussian mixture model was also proposed using the virtual robot experimentation platform. The face image recognition algorithm based on two-dimensional (2D) Gabor wavelet transform and Local Binary Pattern (LBP) was presented. It provides a better classification performance in different scales and directions affected by illumination, gesture, expression, and other factor's variation. With more consciousness in cyber-security, the paper that used the Kalman filter-based attack detection model was proposed. The block withholding delay attack and the countermeasure were also proposed in a similar occasion. The well-known convolutional neural network (CNN) based approach was applied to detect the obstacle for the unmanned surface vehicle. Subsequently, an effective classifier based on the CNN and regularized extreme learning machine (ELM) was adopted to reduce the classification time in the training and testing.

    In summary, this issue concluded with different engineering applications of AI. It is imperative that we continue to progress in our search for better engineering systems design and simulation using AI. The progress reported in this special issue suggests that achieving these aims is an attainable one. I hope that we can stay in contact and make this world a better place for a "deep" collaborative research.



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  • This article has been cited by:

    1. Xu Hao, Deyu Zhou, Ruiheng Zhong, Shunxi Li, Xianming Meng, Bo Liu, Electrification pathways for light-duty logistics vehicles based on perceived cost of ownership in Northern China, 2024, 3, 2831-932X, 10.20517/cf.2024.24
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