Abstract
This paper is concerned with the decision-making process in a two-level decentralized firm which is composed of a headquarter and several divisions, considering technological-interaction in such a case that activity of one division is affected technologically by teh activity of another division.A formulation of this technological-interaction is introduced by analyzing the relation between supplies and requirements of intermediate products.A solution algorithm to this problem is given by extending the algorithm proposed in teh previous paper, and a numerical example was shown.