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In the recent years, as the sustained development of economic construction in Tianjin, living standard has been improving, leading to a substantial increase in traffic volume, thus creating a lot problems to the current traffic management system. Meanwhile, our city is going to speed up the pace of the implementation of the "three-step" strategy in the years to come, which includes the implement of the following items: the economy reformation entering a key phase, industrial structure fast upgrading, Bin Hai New Area into the significant national development program, Haihe River’s overall rebuilt, commercialization economic circle widen into the suburbs, economic construction’s eastward distribution, and last the city progress. Accordingly, it is necessary to make great developments on technology and application of artificial intelligent transportation system if we want have better road condition and serve the people. We can apply the latest computer technology, communication technology, database technology, and artificial intelligence into the traffic management, also, we will systematize this management by integrating the vehicles and the roads other than separating them in the past.This paper is intended to analyze the character of the traffic stream based on the people, vehicles, roads and the environment of the traffic system and make a forecasting model on these, in addition it is also intended to make a simulation model relying on the a given condition of the roads, traffic, and environment, to imitate and assess the capability and service of this software. In order to standardize the collection of data, we should, at first, avoid mistakes resulting from the manual data collection, we have a dedicated traffic data collecting and processing system in this paper. Second, after evaluating the impact of traffic on Tianjin Outer Ring macro and micro factor, we should, based on the traditional forecasting model, respectively adding the neural network, supporting vector machines, combination forecasting model and other advanced nonlinear algorithm to make establishment of traffic short-term & long-term growing forecasting model. Meanwhile, we should select some representative sections to do field surveys, so as to analyze the composition of the various models of vehicles, speed, headway characteristics, and determine some parameters like the vehicles’ distribution on arrival, the average free flow speed distribution, to calibrate the traffic flow simulation model. Basing on the traditional analyzing methods on capacity analysis, we will implement a road simulation model framework using the computer simulation technology, including the grid model to simulate the operation model, the road impact models, simulation models and other special sections. And last, we will select the typical outer ring road of Tianjin to conduct macro and micro traffic flow simulation.
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