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A SIMULATION STUDY OF DECENTRALIZED DECISION MAKING *
Author(s) -
Philippakis Andreas S.
Publication year - 1972
Publication title -
decision sciences
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.238
H-Index - 108
eISSN - 1540-5915
pISSN - 0011-7315
DOI - 10.1111/j.1540-5915.1972.tb00548.x
Subject(s) - computer science , heuristic , profit (economics) , operations research , decentralised system , mathematical optimization , distributed computing , control (management) , microeconomics , artificial intelligence , mathematics , economics
This study develops a heuristic procedure for decision making coordination in a decentralized organization structure. The procedure consists of simplified rules of iterative communication between decentralized units and a central agent. The central agent assigns budgeted profit levels and adjusts such levels guiding the system toward optimality. The decision making procedure developed in this study is compatible with management by objectives practices and can serve as a prototype for decentralized management.