A general problem in relation to application of Markov decision processes t
o real world problems is the curse of dimensionality, since the size of the
state space grows to prohibitive levels when information on all relevant t
raits of the system being modeled are included. In herd management, we face
a hierarchy of decisions made at different levels with different time hori
zons, and the decisions made at different levels are mutually dependent. Fu
rthermore, decisions have to be made without certainty about the future sta
te of the system. These aspects contribute even further to the dimensionali
ty problem. A new notion of a multi-level hierarchic Markov process special
ly designed to solve dynamic decision problems involving decisions with var
ying time horizon has been presented. The method contributes significantly
to circumvent the curse of dimensionality, and it provides a framework for
general herd management support instead of very specialized models only con
cerned with a single decision as, for instance, replacement. The applicatio
nal perspectives of the technique are illustrated by potential examples rel
ating to the management of a sow herd and a dairy herd.