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The purpose of this project is to look at the economic applications of Markov Chains and stochastic matrices in a real-world problem. For this project, I studied a specific case for a rental car company which has a fleet of vehicles for rent in a number of locations. It is very important for the company to know the number of vehicles that will be available on a typical day at each location. This project will show that, on a typical day, the number of available vehicles at the various locations can be known by calculating what is called the steady-state vector of the stochastic matrix associated with the problem. This will help the company to better manage the customer demands. It can then be used to meet any increased demand at a particular location which can occur due to various reasons.
Muhammad N Islam
Primary Advisor's Department
Stander Symposium poster
"A Business Application of Markov Chains" (2018). Stander Symposium Posters. 1222.