How to use US ZIP code data in modeling and forecasting?

Introduction

Five digits ZIP code data in USA is one of the most popular model granularity in Supply Chain and Transportation models. We hear sometimes analysts and scientists complain about “missed ZIPs” or inconsistency of ZIP code boundaries. Many of the models suffers from missed ZIP codes and that cause bad accuracy in outputs. In this paper, we are trying to provide a guideline for how to use ZIP code data in planning and forecasting.

code data forecasting geospatial-data modeling supply chain us zip