Solutions to improve the decision-making process for dynamic allocation of resources in military pre-conflict environments

Abstract

The complexity of the international security environment compels us to analyse the dynamics of the civil-military decision making process regarding the optimal allocation and efficient use of resource units (UoR). The main purpose of this paper is to improve the civil-military decision-making process by analysing from a dynamic perspective the influence of uncertainty on UoR allocation, thus providing a fast intuitive image of resource ratio. To achieve this goal, risk and uncertainty are defined in terms of knowledge (total or partial) of possible future events or potential outcomes of the action/ decision. The decision alternatives capitalize the results obtained by the optional (the real options analysis in conditions of uncertainty) and flexibility (the prediction of transition moment according to the life cycle of resources). Moreover, these findings could have a positive effect across the full range of economic sectors.