Planning in Decentralized Firms: A Contribution to the Theory on Multilevel Decisions

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.

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