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Optimization problems for hierarchical systems are formulated such that local systems have their own independent objectives within some restrictions imposed by a central system. In those systems, the central system governs local ones by means of-the resource allocation to them and optimizes its own objective by suitably allocating resources to them. On the other hand, each local system optimizes its own objective consuming the given resources. An optimization algorithm for those problems is studied based on multiparametric linear programming. Some practical examples are given to indicate the usefulness of our formulation.

Optimization for a Hierarchical System with Independent Local Objectives