Information Technology Journal1812-56381812-5646Asian Network for Scientific Information10.3923/itj.2017.11.16MadhiMahdi HassanMohamedNorizan 12017161Background and Objective: The grey forecasting model has achieved good prediction accuracy when using limited time series data and has been successfully widely applied in several research fields. However, the grey forecasting model at times yields large forecasting errors which need to be improved. Therefore, the current study aims to improve the prediction accuracy of GM(1,1) model. Specifically, in order to minimize such errors, it has been found that background value is an important tool that affects the accuracy and adaptability of GM(1,1) model. Thus, this study proposed a new approach to improve prediction accuracy of GM(1,1) model through an optimization of the background value. Methodology: In this study, an optimization model was developed for the traditional GM(1,1) model based on reconstructing the background value by using the discrete function with non-homogeneous exponential law to fit the accumulated sequence. Results: The comparison shows that the modified model performs significantly better than traditional grey model GM(1,1). Conclusion: The result demonstrates that the modified GM(1,1) model achieves the objective of minimizing the forecast errors and has high accurate forecasting power.]]>Deng, J.L.,19891124Liu, S. and J.Y.L. Forrest,2010Pages: 379Pages: 379Yinao, W., C. Zhijie, G. Zhiqiang and C. Mianyun,200433382389Sun, Y.N. and Y. Wei,20092009pp: 313315Zhou, R., R.G. Li and Y. Chen,201114450Chang, T.C., H.T. Chang and M.L. You,19991999pp: 309313Dai, W. and Y. Chen,20072007pp: 100102Ao, Z., X.Q. Ou and S. Zhu,20112011pp: 117-122pp: 117-122Li, W. and H. Xie,20142014Xiaofei, L. and H. Renfang,20142014Yao, M. and X. Wang,20142014pp: 947-953pp: 947-953Yaoguo, D., L. Sifeng and C. Kejia,200433247254Xie, N.M. and S.F. Liu,20093311731186Wang, Y., Y. Dang, Y. Li and S. Liu,20103756405644Jong, Y. and S. Liu,20144370382Chen, Q. and J. Li,20152015pp: 354-362pp: 354-362Li, H.W., Q.Y. Liu and W.J. Mao,20102010pp: 4144