Efficient resource allocation mechanisms for large organizations

Economists have become interested in the centralization and decentralization of planning, in the linking up of models into a homogenous model system, and in multi-level planning. In this study, Input/Output techniques used for explaining the resource allocation mechanisms to be more rational through detailed specifications of a large organization's objectives and explicit linking of centralization and decentralization to such objectives. Also the application of mathematical methods to the higher levels of planning in the optimal allocation resources can't fully describe the actual practice of planning. On the other hand, 1-0 techniques are standard in economic analysis and planning. However, the application procedures to the armed forces hold only when their assumptions are met and when their solutions are convergent. So, it is of limited applicability.