| Article ID: | iaor20062264 |
| Country: | United Kingdom |
| Volume: | 13 |
| Issue: | 3 |
| Start Page Number: | 187 |
| End Page Number: | 199 |
| Publication Date: | Jul 2002 |
| Journal: | IMA Journal of Management Mathematics (Print) |
| Authors: | Ng Michael K., Ching Wai-Ki, Fung Eric S. |
| Keywords: | agriculture & food, manufacturing industries |
Markov models are commonly used in modelling many practical systems such as telecommunication systems, manufacturing systems and inventory systems. In this paper we propose a multivariate Markov chain model for modelling multiple categorical data sequences. We develop efficient estimation methods for the model parameters. We then apply the model and method to demand predictions for a soft-drink company in Hong Kong.