Abstract
Management science has for over thirty years been concerned with mathematical and computer models at the macro, meso and micro levels of detail to support corporate decision-making in planning, management and control, which reflects the classical three-level military hierarchical planning concepts of strategic long-run, tactical medium-run and operational short-run [1] (see Table 6.1). As planning moves down the corporate hierarchy it becomes increasingly detailed and involves shorter timescales and many more, but smaller, uncertainties. The mathematical modelling involved at successively lower levels reflects these differences — paralleling the macro, meso and micro-scale mathematical models of classical physics (e.g. see Woods [2]) — increasing in complexity at each level (see Table 6.2). In a stationary corporate environment, operational planning models — involving mainly management and control functions — can become extremely complex. In a highly dynamic uncertain environment, useful mathematical and computer models tend to become simpler, as it is the strategic and tactical decisions involving rarer major uncertainties which are critical for survival.
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Dempster, M.A.H. (1996). Hierarchical Modelling. In: Cochrane, P., Heatley, D.J.T. (eds) Modelling Future Telecommunications Systems. BT Telecommunications Series, vol 7. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-2049-8_6
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DOI: https://doi.org/10.1007/978-1-4615-2049-8_6
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