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

Author

Listed:
  • Wayne J. Davis

    (College of Engineering, University of Illinois at Urbana-Champaign, Urbana, Illinois 61801)

  • David T. Whitford

    (College of Commerce & Business Administration, University of Illinois at Urbana-Champaign, Urbana, Illinois 61801)

Abstract

This note demonstrates that Freeland's (Freeland, J. R. 1976. A note on goal decomposition in a decentralized organization. Management Sci. 23 100--102.) modification of Ruefli's (Ruefli, T. W. 1971. A generalized goal decomposition model. Management Sci. 17 505--518.) 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 (Freeland, J. R. 1976. A note on goal decomposition in a decentralized organization. Management Sci. 23 100--102.) three-level model, the interactions between the two lowest level of the hierarchy must be strictly controlled before information is passed to the highest level of the organization.

Suggested Citation

  • Wayne J. Davis & David T. Whitford, 1985. "Note---A Note on the Optimality of the Modified Generalized Goal Decomposition Model," Management Science, INFORMS, vol. 31(5), pages 640-643, May.
    • Handle: RePEc:inm:ormnsc:v:31:y:1985:i:5:p:640-643
    DOI: 10.1287/mnsc.31.5.640
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