One of the aims of this investigation is to examine the accuracy of different forecasting
models and thus identify which is the best among the traditional method, GM or GM
modification model. Market data from those models were obtained from levels of demand
and sales in the global IC industry. Fig. 1 illustrates the structure of this work.
The remainder of this work is organized as follows. Section 2 describes the application and
development of Grey system theory. Section 3 then presents the GM (1,1) and the residual
modification model. Next, Section 4 analyzes and compares the empirical results obtained
from the six forecasting models. Finally, Section 5 presents the author’s conclusions.