Strategic Management (Jan 2015)
Stochastic models applicable in consumer relationship management
Abstract
An economic system is an inherently stochastic behavior that takes place depending on several variables. Lately, great attention has been paid to formulas and algorithms of economic decision making. As a result, many methods have been used to find optimal solutions. Under the influence of the stochastic factors of economic systems, decisions affecting the course routing system through feedback systems must also include uncertainty. Considering the relationship between the presence of certainty and uncertainty in the observed business system, making business decisions can be classified as making a decision: 1) in terms of certainty, when all parameters in the environment are known, so the future is said to be determined, i.e. determined with certainty, and 2) in terms of uncertainty, when making a decision depends on the realization of events whose realization is uncertain. Decision making in a case of certainty is less interesting from the research perspective because the past is only certain, and as a rule, the future is what is only decided on. The subject of this research paper is related to the modeling of the process of preparation and decision making under conditions involving risks, i.e. in cases where uncertainty can be replaced with probabilities. Research attention has been focused on an analysis of stochastic models with regard to well-explored deterministic models. The hypothesis that led us through the preparation of this research paper is: the optimization of inventory in retail can be efficiently implemented by using stochastic optimization models stock, which was used with the available data from analytical CRM systems. The reason for addressing this research issue is that, in economic practice, we often encounter problems related to the functioning of stochastic processes. As a rule, these are the systems that characterize the stochastic function of time and space, whose development is made according to the laws of probability; in managing relationships with consumers, it has turned out to be the specific and key uncertain factor in a business’s success.
