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Decision-Making on Realization of Business Processes: Applying an Optimization Model

Author: Fyodor Ya. Legotin, Dr. Sc. (Ec.), Prof. of Enterprises Economics Dept.; Sergey V. Voronin, postgraduate of Enterprises Economics Dept.

Abstract: The paper suggests an optimization approach to decision-making using such parameters as investment minimum, profit maximum and risk minimum. The approach features absence of strictly defined limitations, simplicity and clarity. It can be used both by financial and economic management. The example particularly stresses as the most typical the situation of taking decision by a hired worker (a manager).

Key words: decision-making; optimization; risk; damage; income; profit; utility; cumulative capital.