Information Processing and Programmed Decision Systems

The capacity to evaluate decisions and information within a unified analytical model of the firm is at best a complex task. Even if, for the sake of simplicity, we ignore the effects of human behavior within organizations, most research on information processing design and evaluation has sought simulation in lieu of an explicit mathematical model.

The purpose of this discussion is to suggest some practical extensions of the decision theory model for the design of management information processing systems and to illustrate these ideas through the detailed analysis of an aggregate planning problem.