A Note on the Optimality of the Modified Generalized Goal Decomposition Model

This note demonstrates that Freeland's (1976) modification of Ruefli's (1971) Generalized Goal Decomposition model can generate nonoptimal solutions and shows how these difficulties can be corrected. In several papers on multi-level planning, it has been suggested that extending the hierar...

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Bibliographic Details
Published in:Management science 1985-01, Vol.31 (5), p.640-643
Main Authors: Davis, Wayne J., Whitford, David T.
Format: Article
Language:English
Subjects:
Algorithms
Applied sciences
Business management
Decision theory. Utility theory
Exact sciences and technology
Mathematical vectors
Multilevel models
Objective functions
Operational research and scientific management
Operational research. Management science
Optimal solutions
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Summary:This note demonstrates that Freeland's (1976) modification of Ruefli's (1971) Generalized Goal Decomposition model can generate nonoptimal solutions and shows how these difficulties can be corrected. In several papers on multi-level planning, it has been suggested that extending the hierarchical levels of the models from two to three or more levels is a straightforward process. This paper shows that this assertion is generally not true. The note points out that in Freeland's (1976) three-level model, the interactions between the two lowest levels of the hierarchy must be strictly controlled before information is passed to the highest level of the organization.
ISSN:0025-1909
1526-5501
DOI:10.1287/mnsc.31.5.640