2004 Volume 13 Issue 2 Pages 107-121
This paper deals with an attempt of solving a large scale complex problem by the Organizational cybernetics theory. For an example, as set allocation problem is adopted, which is originally large and complex. The Organizational cybernetics theory decomposes it into simple and small information units, and then gives them a rational and effective coordination regarding the problem as an organization. This model uses scenario method; an environment of the organization is described by the scenario aggregation consisting of necessary and sufficient number of scenarios having occurring probabilities. Decomposed problems’ optimizations converge to the overall problem’s optimization by the organizational coordination. The goal of the model is an investment recommendation which optimizes investor’s utility at the end of the planning term. The goals of small and simple units are gained easily, but they can not reach the overall optimization without the coordination. In organizational solving, the most important point is that the model is established to be coordinated effectively and efficiently.
