Economic Decision-Making Algorithm for Cross-Border Industrial E-Commerce Material Purchase Quantity Based on Markov Chain

Abstract

With the deepening of globalization, cross-border industrial e-commerce has increasingly become a mainstream means of trade exchanges, however, with the continuous increase in business volume. How to accurately estimate the procurement volume of cross-border materials is a significant issue, which plays a vital role in quantifying economic efficiency. To this end, this study proposes a financial decision-making algorithm for cross-border industrial e-commerce material procurement based on the Markov chain. The algorithm first preprocesses the original logistics data, including data cleaning, missing data filling, and noisy data removal, represents the data as structured panel data, finally builds a Markov chain model based on the panel data, and then makes predictions on the new data. We verified the effectiveness of the proposed model on a simulated dataset and an actual dataset.