Forecasting Customer Traffic at Postal Service Points

Abstract: The goal of this thesis is to be able to predict customer traffic at postal service points. The expectation is that when customers are made aware of queue times at the service points, they will redistribute themselves to avoid standing in line. This boils down to a form of time series prediction problem. When working with time series prediction, there are potentially other factors that may help the models make a more accurate prediction. Factors that may affect people’s behavior are unlimited, but this thesis examines the effect of the external calendar variables (weekday, date and public holiday) and weather variables (temperature, precipitation and sun, among others) when making the predictions. Non-linear models are examined, with the focus on Multilayer Perceptrons (MLPs) and Long Short-Term Memory (LSTM) models that have shown promising results in time series prediction, and these models are referred to as Artificial Neural Networks (ANNs). Support Vector Regression (SVR), Autoregressive Moving Average (ARIMA) and statistical average models are used for comparison. The results show that using external variables as additional input to LSTM, MLP and SVR models increases the test prediction performance. Further, the MLP model generally performs better than the LSTM models. The results are acquired using six postal service points, and the final results are based on a six-fold cross validation across all six service points. The LSTM and MLP are able to better use the external variables and show greater adaptability during e.g. public holidays, compared with the SVR model. The ARIMA and historical average model show less accurate predictions compared with the aforementioned models.