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višnja vojvodić rosenzweig, hrvoje volarević, mario varović: a multi-criteria analysis of the banking system in the republic of croatia financial theory and practice 37 (4) 403-422 (2013) 403A multi-criteria analysis of the banking system in the Republic of Croatia introductionThe purpose of the paper is to show the usefulness of multi-criteria decision-making in an analysis of the strategies of economic agents that are all in the same economic activity. The analysis will use a mathematical model of multi-criteria decision making, which will contain a number of the different individual criteria that are usually used in the framework of this branch of the economy. The analysis and ranking of the banking system according to the criteria selected in the model are applied in accordance with the preferences of the decision makers. The mathematical model for multi-criteria decision making presented will contain nine individual criteria classified into three basic groups -profitability, security (or risk) and liquidity -which are the interlinked components of financial management. The paper will formulate the problem of goal programming in which the goal of the bank is determined by the level of a single indicator from a group of cognate indicators, and the closest operational performance to the goal established is sought.

Background:The ranking of commercial banks is usually based on using a single criterion, the size of assets or income. A multicriteria approach allows a more complex analysis of their business efficiency. Objectives: This paper proposes the ranking of banks based on six financial criteria using a multicriteria approach implementing a goal programming model. The criteria are classified into three basic groups: profitability, credit risk and solvency. Methods/Approach: Business performance is evaluated using a score for each bank, calculated as the weighted sum of relative values of individual indicators. Results: In the process of solving the corresponding goal programming problem, the weights are calculated. It is assumed that the goal of each bank is the highest profitability. Because of the market competition among banks, the weights of indicators depend on the performance of each bank. This method is applied to the five biggest Croatian banks (ZABA, PBZ, ERSTE, RBA and HYPO). Conclusion: For the observed period (2010), the highest priority is given to profitability and then to credit risk. The ranking is achieved by using a multicriteria model.

Abstract.The main task of supply chain management is to balance efficiency and effectiveness. Numerous operational management strategies are used to make a supply chain efficient, one such is inventory management. In this paper, we will consider a particular part of a supply chain consisting comprising a manufacturer and a retailer with the goal of minimizing associated inventory costs. We will focus on an inventory of final products determined as the difference between supply and demand and are expressed as a function of price, inflation rate and change in inflation rate resulting in the possible speculations. The manufacturer's inventory cost is a function of these same variables, with the retailer's inventory cost having the same function in addition to the margin. The problem is formulated as a dynamic game to share the speculation problem. The optimization problems to be solved are optimal control theory problems with objective functions in the form of integral functional with the integrand depending on the state function and its first and second derivative.