Abstract/Details

Multiscale decision-making: Bridging temporal and organizational scales in hierarchical systems


2008 2008

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Abstract (summary)

Effective decision-making is a key prerequisite for a successful organization. Today’s organizations are large and continue to grow in size and scope. This development leads to higher complexity in managing and controlling organizations. Consequentially, selecting the right course of action has become more difficult for the individual decision-maker. Considering only immediate and local effects of actions reduces decision complexity but also decision quality. Effective decision-makers need to take into consideration the consequences of their actions on different time and organizational scales. In our research we develop a framework for multiscale decision-making, which gives decision-makers the ability to make opportune decisions in the face of multiscale system properties. Also, we provide organizations with a tool with which they can gauge the consequences of various organizational parameters on hierarchically interacting agents over multiple organizational and temporal scales.

We begin our investigation with a model of two hierarchically interacting agents in a superior-subordinate relationship. The agents influence each other's rewards and chances of success with their decisions. This bi-directional influence creates a game-theoretic situation. Using the concept of Nash equilibria, we determine the agents' optimal strategies for different organizational parameters. Results are presented through phase diagrams, which graphically capture how variations in organizational parameters affect agent behavior.

We extend this model of hierarchical interaction between two agents to a generalized tree-structured interaction network of many agents. This network resembles the typical organizational form of an enterprise. We visualize the hierarchical agent interaction with dependency graphs, which provide a compact representation of the organization and the associated parameters.

In a final step, we extend the one-period model to allow for multiple time periods. We use Markov decision processes to model the multi-time-scale interactions. We take into consideration that decisions on lower organizational scales are made at a higher frequency than decisions at higher organizational scales. By considering the interdependence of decision frequency and hierarchal level, we fuse the temporal scale with the organizational scale which results in one comprehensive multiscale decision-making model.

Indexing (details)


Subject
Industrial engineering;
Operations research
Classification
0546: Industrial engineering
0796: Operations research
Identifier / keyword
Applied sciences, Decision analysis, Distributed decision-making, Game theory, Hierarchical production planning, Multiscale systems
Title
Multiscale decision-making: Bridging temporal and organizational scales in hierarchical systems
Author
Wernz, Christian L.
Number of pages
154
Publication year
2008
Degree date
2008
School code
0118
Source
DAI-B 69/12, Dissertation Abstracts International
Place of publication
Ann Arbor
Country of publication
United States
ISBN
9780549915805
Advisor
Deshmukh, Abhijit
Committee member
Baker, Erin; Lee, Woojin
University/institution
University of Massachusetts Amherst
Department
Industrial Engineering & Operations Research
University location
United States -- Massachusetts
Degree
Ph.D.
Source type
Dissertations & Theses
Language
English
Document type
Dissertation/Thesis
Dissertation/thesis number
3336994
ProQuest document ID
304566436
Copyright
Database copyright ProQuest LLC; ProQuest does not claim copyright in the individual underlying works.
Document URL
http://search.proquest.com/docview/304566436
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