# The main stages of building a mathematical model

To use a mathematical model for a specific production and economic situation, information technology should be applied. Information technology makes it possible to accurately distinguish from the set of real production and economic situations exactly the one that fully corresponds to specific circumstances. This technology consists of the following eight stages.

Step 1. SELECTION OF THE MODELING OBJECT (for example: warehouse of finished products; organization of the release of new products or transportation systems, etc.).

Step 2. ANALYSIS of the PROBLEM SITUATION that has developed in the simulation object under consideration . For example, for the normal functioning of the warehouse of finished products, it is necessary to link the speed of consumption of products with the delivery time and the size of warehouse space, working capital, which are always limited.

Step 3. THE TYPE AND NUMBER OF UNOBSERVABLE PARAMETERS (searchable values of the FIT and the main variables X j), the definition of which will allow you to choose the justified management of a particular economic object.

Step 4. TYPE AND NUMBER OF OBSERVABLE PARAMETERS (set values of the right parts of constraints b[i], cost coefficients a[ij], boundary conditions for the variables to be found.

Step 5. THE CONDITION OF ADEQUACY, that is, the certainty that the mathematical model of an economic object fully (or in the main features) characterizes its actual optimal functioning. Usually, adequacy is made dependent on the numerical value of the optimality criterion (or several such criteria in multi-criteria with multi-criteria optimization).

Step 6. THE MATHEMATICAL APPARATUS USED, corresponding to a specific mathematical description of the production and economic situation. (For example, analytical relationships between the main parameters of the movement of reserves).

Step 7. ANALYSIS OF THE RESULTS OF MODELING an economic object: the optimal values of the main variables and the objective function. These values form the basis of the economic analysis of a particular object, followed by conclusions.

Step 8. DECIDE. Based on the results of the optimal values and the conclusions made at stage 7, a decision is made on the management of the economic object.