Quantitative Analysis for Management, 13/e

14.6 Absorbing States and the Fundamental Matrix: Accounts Receivable Application

In the examples discussed thus far, we assume that it is possible for the process or system to go from one state to any other state between any two periods. In some cases, however, if you are in a state, you cannot go to another state in the future. In other words, when you are in a given state, you are “absorbed” by it, and you will remain in that state. Any state that has this property is called an absorbing state. An example of this is the accounts receivable application.

If you are in an absorbing state, you cannot go to another state in the future.

An accounts receivable system normally places debts or receivables from its customers into one of several categories ...