The Attainment of Organization Goals Through Appropriate Selection of Sub Unit
The Attainment of Organization Goals Through Appropriate Selection of Sub Unit
A Abraham Charnes
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, -- rather than incorporating additional capacity "at a cost" or an infinity of different possible operations to replace the current one at some cost or another. However, although most technological constraints result from a management decision of one kind or another -- e. G. , a decision not to buy a bigger machine -- specification of constraints whose tangible physical properties are not a priori apparent is infrequent, at least in the published literature. Explicit recognition of the validi...ty of management's imposing, by fiat as it were, policy constraints on the maximization problem is an important step in increasing the usefulness of operations research models in the context of management decison problems of broad scope. An example is provided by Charnes, Cooper, and Miller (1959) who specify a minimum cash balance constraint as a management desideratum in addition to the usual technological constraints. The short-run cost of capital implied 15 by the constraint may then be imputed by using the dual variable assoc- iated with the cash balance constraint, thus serving as a guide to future management decisons.
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