Strategic Management of Multinational Companies: Network-Based Planning Systems.
TEXAS UNIV AT AUSTIN CENTER FOR CYBERNETIC STUDIES
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Great environmental uncertainties have increased the importance of formal planning structures to assist multinational firms in adapting to a rapidly changing world. It is our belief that the information needed by multinational planners can best be generated by superimposing the strategies of the firm on the operating system. In the past, fully integrated optimization operations planning models were infeasible because of the enormous complexity of multinational companies resulting in extremely large models and very slow solution time--if a solution could be obtained at all. This has led to non-optimization simulation modeling which provides some but not enough relevant information. With the recent advance in network modeling and solution technology, a move to optimization procedures is feasible and desirable. The power of these procedures over simulation models is demonstrated in an application for the U.S. Treasury, where we show how a network model can lend insight into important planning issues and development hard cost information for soft constraints. Author
- Administration and Management
- Economics and Cost Analysis