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Using historical information in the design of a decentralized firm's budgetary planning system

Publication ,  Journal Article
Burton, RM; Obel, B
Published in: Computers and Operations Research
January 1, 1989

In organizational design, the decentralized multidivisional firm has choice in the generation and use of information for budgetary planning. In this research we investigate the use of four historical information categories for the efficient determination of good plans. Based upon the simulation results of nine experiments for each of two models, we found that historical information of last period's solution, when used to set the initial budgetary plan and/or limit the proposed adjustments, can be efficient in an iterative planning system. The results are also consistent with a contingency theory of organizational design, since the level of environmental uncertainty and the degree of technological interdependency are important contingencies. © 1989.

Duke Scholars

Published In

Computers and Operations Research

DOI

ISSN

0305-0548

Publication Date

January 1, 1989

Volume

16

Issue

2

Start / End Page

129 / 143

Related Subject Headings

  • Operations Research
  • 4901 Applied mathematics
  • 3509 Transportation, logistics and supply chains
  • 0103 Numerical and Computational Mathematics
  • 0102 Applied Mathematics
 

Citation

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Burton, R. M., & Obel, B. (1989). Using historical information in the design of a decentralized firm's budgetary planning system. Computers and Operations Research, 16(2), 129–143. https://doi.org/10.1016/0305-0548(89)90015-4
Burton, R. M., and B. Obel. “Using historical information in the design of a decentralized firm's budgetary planning system.” Computers and Operations Research 16, no. 2 (January 1, 1989): 129–43. https://doi.org/10.1016/0305-0548(89)90015-4.
Burton RM, Obel B. Using historical information in the design of a decentralized firm's budgetary planning system. Computers and Operations Research. 1989 Jan 1;16(2):129–43.
Burton, R. M., and B. Obel. “Using historical information in the design of a decentralized firm's budgetary planning system.” Computers and Operations Research, vol. 16, no. 2, Jan. 1989, pp. 129–43. Scopus, doi:10.1016/0305-0548(89)90015-4.
Burton RM, Obel B. Using historical information in the design of a decentralized firm's budgetary planning system. Computers and Operations Research. 1989 Jan 1;16(2):129–143.
Journal cover image

Published In

Computers and Operations Research

DOI

ISSN

0305-0548

Publication Date

January 1, 1989

Volume

16

Issue

2

Start / End Page

129 / 143

Related Subject Headings

  • Operations Research
  • 4901 Applied mathematics
  • 3509 Transportation, logistics and supply chains
  • 0103 Numerical and Computational Mathematics
  • 0102 Applied Mathematics