Using of Optimization Models in Financial Decision Support Systems

Keywords: decision support systems, modeling, financial management, algorithm, integration, formal model, functional model, construction of information systems.

Abstract

The article discusses the use of optimization models in financial decision support systems (DSS). The architecture of the DSS is considered. It is determined by the nature of the interaction of its main components: the user interface, database and data warehouse, documents and rules, models and analytical tools, communications infrastructure and networks, as well as elements of these parts. The architecture of the DSS for solving problems of financial management is determined by the nature of interaction of its main components.

Conceptual and functional models are presented. The functional model of the DSS reflects the structure of control actions on decision-makers, persons involved in the implementation of corrective actions necessary for effective financial performance. According to the functional model, a block diagram of the DSS is proposed. The block diagram of decision support consists of three main subsystems and provides modular-block construction. The proposed system is characterized by an open architecture and can be easily modified for functional expansion or for connecting and using external databases. The DSS should provide a common operating environment for modeling objects in a dynamically changing economic situation. The operating environment contains basic calculation algorithms, and allows the user to create own algorithms for calculating cash flows and used indicators. Thus, the key element of the integrated decision support system for managing the financial condition of the enterprise is the models laid down in the basis of the system.

The architecture of the DSS based on algorithms is considered. A DSS of this type contains a set of algorithms for solving a selected class of problems. Of the factors that influence the choice of a specific architecture of the DSS in financial management, we can highlight (i) the need for further development of the system, (ii) its adaptation, and (iii) the application of the evolutionary approach to the development of the DSS. The components of the system are: data input component, resource allocation component, strategy selection component, output component. The resource allocation component contains the following sub-components: determination of dependence coefficients, solution of optimization problem, solution of equation. The strategy selection component includes the sub-components for calculating the values of integral design characteristics, for calculating the values of groups of design characteristics, and for the pairwise comparison of strategies.

The information model of the component “The distribution of financial resources of the enterprise” is presented. The DSS performs data processing and checks for critical decision characteristics. The formalized structure of the algorithm for using the proposed models of distribution of financial resources, types of model integration are considered.

Downloads

Download data is not yet available.

References

Sytnik, V. F. (2004). Systemy pidtrymky pryiniattia rishen [Decision support systems]. Kyiv: KNEU [in Ukrainian].

Kozlov, V. V., Kuznetsov, M. I., & Tomashevska, T. V. (2019). Systemnyi pidkhid ta informatsiini tekhnolohii pidtrymky pryiniattia rishen v derzhavnomu upravlinni [The Use of decision support systems in financial management]. Development strategy of Ukraine: financial, economic and humanitarian aspects. VI Mizhnarodna naukovo-praktychna konferentsiia – VI International scientific and practical conference. Kyiv: DP “Inform-analit. ahenstvo" [in Ukrainian].

Romanov, V. P. (2003). Intelligent information systems in the economy. N. P. Tikhomirov (Ed.). Moscow: Examen [in Rusian].

Veres, O. M. (2010). Vydy arkhitekturnykh system pidtrymky pryiniattia rishen [Types of architectural decision support systems]. Visnyk Natsionalnoho universytetu “Lvivska politekhnika”. Kompiuterni systemy proektuvannia. Teoriia i praktyka – Bulletin of Lviv Polytechnic National University. Computer-aided design systems. Theory and Practice, 685, 190–197 [in Ukrainian].

Baranovskaya, T. P., Ivanova, Ye. A., & Kanatov, A. A. (2017). Razrabotka sistemy podderzhki priniatiia reshenii dlia otsenki ustoichivosti predpriiatiia [Development of a decision support system for assessing enterprise sustainability] Nauchnyi zhurnal KubGAU – Scientific Journal of KubSAU 129 (05). Retrieved from http://ej.kubagro.ru/2017/05/pdf/78.pdf [in Russian].

Marakas, G. M. (2003). Decision Support Systems in the 21st Century. (2nd ed.). Upper Saddle River: Prentice Hall.

Power, D. J. (2003). A Brief History of Decision Support Systems. DSS. Resources.COM, World Wide Web, Version 4.0, March 10, 2007. Retrieved from https://dssresources.com/history/dsshistory.html

Polovtsev, O. V., (2010). Systemnyi pidkhid ta informatsiini tekhnolohii pidtrymky pryiniattia rishen v derzhavnomu upravlinni [System approach and information technologies of decision making support in public administration]. Donetsk: Skhidnyi vydavnychyi dim [in Ukrainian].


Abstract views: 65
PDF Downloads: 20
Published
2020-03-01
How to Cite
Kozlov, V. V., Tomashevska, T. V., & Kuznetsov, N. I. (2020). Using of Optimization Models in Financial Decision Support Systems. Statistics of Ukraine, 88(1), 75-83. https://doi.org/10.31767/su.1(88)2020.01.09