Qualitative Substantiation of Strategic Decisions in the Field of Cost Management using the Methods of Economic Mathematical Modeling
Qualitative Substantiation of Strategic Decisions in the Field of Cost Management using the Methods of Economic Mathematical Modeling

Summary/Abstract: The adoption of high-quality and balanced decisions in the field of cost management requires appropriate information and analytical support, and the possibility of prompt calculation of alternative variants with reference to predicted results. It was proposed to use the means of economic mathematical modeling to solve the problem of forming tools to improve information analytical support for the cost management, namely, the discrete multi-criteria optimization method with the subsequent development of an optimization model comprising information analytical support for cost management. In the process of developing the model, it was taken into account that from a formal point of view the configuration regardinginformation analytical support for cost management is optimized, and this implies an increase in the speed and quality of management decision-making with a sufficient level of reliability (validity) and minimization of costs. Accordingly, in order to build an optimality criterion, two minimization problems are solved in the corresponding optimization model, both of which comprises information and analytical support for cost management. As a result regarding application of the model, the optimal configuration of information analytical support for cost management is formed, which allows optimizing costs and improving the quality of management decisions.

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