This paper presents a formal discussion of an adaptive behavior of an organization, which is based on a three layer model of an organization, operation layer, organization layer and institution layer. The layer model is a specialization of the complex model of the general systems theory, which can be also considered as a modification of the viable systems model of the management cybernetics. The paper is concerned with an adaptive behavior of the institution layer.

In order to pursue the formal approach the environmental input is analyzed into two components, structural component and probabilistic component. Furthermore, the adaptation is assumed to be planned on a normative model of the primary activity of the organization. Combining an organization goal with the analyzed input and the normative model a concept of adaptive goal is defined. Then, the adaptive goal yields two concepts, adaptive goal controllability and ø - α consistency, which are basis of theoretical results of this paper internal model principle and variety matching.

This Paper deals with problem of determine in the number of set-ups, production lot size, production priority and production starting time under a single stage lot production system. The product items produced in the system have different demand periods and starting time for demand. The production planning aims to determine the number of set-ups for load ratio, set up time ratio and maintain each demand point for item. As a result of analysis, a structural formulation of product inventory is revealed. It can clarify the relation among the number of set-ups each product, production lot size each product, required quantity of each product, starting time for demand of each product, processing time and set up time of each product, each demand period, product inventory. Based on the formulation, an algorithm is proposed to determine the number of set-ups for load ratio and set up time ratio, production lot sizes, production priority and production starting times. A numerical example shows the usefulness of the procedure proposed.

In this article, we refer to ‘knowledge community’ in information society. Recently, the knowledge community generates the virtual organization and group that mainly divides i) e-business type (B to B, B to C) as the organizational level, ii) global and local type as the social level, and iii) circle type as the individual level. Then we focus on what is the nature of knowledge community and what is the virtuality the different from reality. Especially knowledge community requires the collaboration and co-creation based on ‘trust relations’ of participants. Therefore, we discuss the necessity of trust management’ for the surviving knowledge community.

Transactions can be characterized by three dimensions: (1) number of suppliers or buyers, (2) concentration ratio of inter-corporate transactions, and (3) degree of continuousness. In this survey, we investigate how transaction characteristics have changed in the information age. Our survey results clearly show that spot transactions produce negative effects on performance variables. Other results imply that opening competition destined for continuous cooperation saves transaction costs, decreases feedback time, and increases bargaining power.