C. Homburg, PRODUCTION PLANNING WITH MULTIPLE OBJECTIVES IN DECENTRALIZED ORGANIZATIONS, International journal of production economics, 56-7, 1998, pp. 243-252
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
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