Neural networks as a powerful tool in the hands of the manager

Abstract

Managers in their work use sophisticated procedures from many scientific branches. In order to make good decisions in the stretegic level of management, they can use for predictions relatively new and effective instruments like neural network algorithms GMDH and Backpropagation. Their contribution is shown in an example from the transportation enterprise. There is a time series with 192 values of manipulated transport units per month. The expert estimations made by the manager working in the transportation enterprise, which were made on the basis of technological knowledge and experience, were compared with the estimations made by above mentioned neural network prediction algorithms. In this comparison the benefit of using neural networks is evident. In the hands of a manager the neural networks are a powerful tool to increase the benefit of the enterprise.