PRODUCTION PLANNING WITH MULTIPLE OBJECTIVES IN DECENTRALIZED ORGANIZATIONS

The paper presents a procedure for supporting the process of productio n planning in decentralized organizations. A situation is considered s imilar to that of the Dantzig/Wolfe algorithm: several divisions use s carce production resources that are controlled by the top management. In contrast to the Dantzig/Wolfe situation, however, all decision make rs - on the top- as well as on the base-level - are assumed to have mo re than one goal. Therefore, within the process of production planning a hierarchical negotiation between top- and base-level takes place, i n which interpersonel as well as intrapersonel conflicts have to be so lved. The well-known interactive MODM algorithm of Zionts/Wallenius is modified in order to structure the hierarchical negotiation and to mo del its hierarchical character. The negotiation results in a feasible resource allocation and in a set of aspiration levels for the goals of the top-level which have to be met by the different divisions. (C) 19 98 Elsevier Science B.V. All rights reserved.