The completion of this thesis gives me feelings of satisfaction and thankfulness. Satisfaction because its results appear to be worthwile and relevant, and thankfulness towards so many persons who contributed to the progress of the work. The project "Analysis of multilevel decisions" was granted by the common research pool of Tilburg University and Eindhoven University of Techno- logy (Samenwerkingsorgaan Brabantse Universiteiten). During the 4-year lead time, the Department of Econometrics of Tilburg University provided not only a single room but also a pleasant and inspiring environment, for which I am very grateful. The research itself, particularly the inevitable scientific struggles, was perfectly coached by my promotors, Prof. Dr. P.A. Verheyen and Prof. Dr. J.F. Benders. I cannot give even the slightest description of the unique way in which they managed to do this. In all criticism they succeeded to maintain a positive, and thus stimulating, working atmosphere. The work also benefited from the suggestions gi ven by Prof. Dr. Th.M.A. Bemelmans, Prof. Dr. J.P.C. Kleijnen, Prof. Dr. P.H.M. Ruys and Prof. Dr. A. Schrijver. Furthermore I am indebted to Dr.
Adam Wofniak (Warsaw University of Technology), who made me participate in his multi- level experience and critically commented on an earlier draft of the thesis.
One Introduction.- 1.1. Problem statement.- 1.2. Outline of the book.- 1.3. Relevant economic literature.- 1.4. The multilevel approach.- Two The Model of the Firm: Multiple Techniques and Make-or-buy Decisions.- 2.1. Introduction.- 2.2. The firm in input-output terminology.- 2.3. Multiple techniques for market products.- 2.4. Make-or-buy decisions for technical services.- 2.5. Summary.- Three The Model of the Firm: Cost Allocations and Organizational Structure.- 3.1. Introduction.- 3.2. Cost allocation problems.- 3.3. Three illustrative examples.- 3.3.1. The Louderback-Moriarity approach.- 3.3.2. The reciprocal allocation method.- 3.3.3. Fixed cost allocation via mathematical programming.- 3.4. Cost allocation and multilevel decisions.- 3.4.1. Motives for the analysis of allocation problems.- 3.4.2. Cost allocation in a decentralized organizational structure.- 3.5. The overall model.- 3.6. Summary.- Four Decomposition Based Planning: Price and Resource Directive Coordination.- 4.1. Introduction.- 4.2. The planning problem.- 4.3. Price-directive planning according to the Dantzig-Wolfe decomposition method.- 4.4. Resource-directive planning according to Benders' decomposition method.- 4.5. Discussion.- 4.6. Summary.- Five Decomposition Based Planning: Mixed Price-Resource Directive Approaches.- 5.1. Introduction.- 5.2. Division-oriented mixed decomposition.- 5.3. Resource-oriented mixed decomposition.- 5.3.1. Development of the algorithm.- 5.3.2. Generation of globally feasible solutions.- 5.3.3. Economic interpretation.- 5.4. Summary.- Six Overall Analysis of the Model of the Firm.- 6.1. Introduction.- 6.2. Properties of overall solutions.- 6.2.1. The case with common resources in excess supply.- 6.2.2. The case with common resources in limited supply.- 6.3. Numerical example.- 6.4. Establishment of the overall production plan.- 6.5. Incorporation of cost allocation mechanisms.- 6.5.1. The allocation of internal-TS costs.- 6.5.2. Common cost allocation.- 6.6. Summary.- Seven Multilevel Analysis of the Model of the Firm.- 7.1. Introduction.- 7.2. The multilevel approach for decentralized firms.- 7.3. Proposal for a two-level planning procedure.- 7.3.1. Outline of the planning procedure.- 7.3.2. Intermediate divisional activity plans.- 7.3.3. The information contents of exchanged data.- 7.3.4. Numerical example.- 7.4. Cost allocations during the planning process.- 7.4.1. Allocation of internal-TS costs.- 7.4.2. Common cost allocation.- 7.5. Summary.- Eight Review and Evaluation.- 8.1. Review of the text.- 8.2. Evaluation of the results.- Appendix A: appendix to Chapter Two..- Appendix B: appendix to Chapter Three..- Appendix C: appendix to Chapter Four..- C.1. Derivation of the price-directive planning procedure according to Dantzig-Wolfe.- C.2. Derivation of the resource-directive planning procedure according to Benders.- Appendix D: appendix to Chapter Five.- D.1. Proof of Theorem 5.1.- D.2. Further relaxation of problem (5.20).- D.3. A convergence proof for the algorithm as presented in section 5.3.1.- Appendix E: appendix to Chapter Six.- Appendix F: appendix to Chapter Seven.- List of Symbols.- References.
Series: Lecture Notes in Economic and Mathematical Systems
Number Of Pages: 172
Published: June 1987
Publisher: SPRINGER VERLAG GMBH
Country of Publication: DE
Dimensions (cm): 24.41 x 16.99
Weight (kg): 0.31