A network optimization model for budget planning in multi-objective hierarchical systems

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


This paper presents a planning/budgeting scheme for hierarchical systems. A multi-objective network optimization model for multilayer budget allocation is suggested. The network presents the hierarchical structure of the system. The budget allocations are the flows in the network. Each component in the system (arc in the network) has lower and upper bounds. The model maximizes the additive utility function of the system, expressed as a weighted summation over the preferences of the systems components in the various levels. The preferences are evaluated by using a multigoal approach, utilizing the Analytical Hierarchy Process (AHP). Finally, the modelis conceptually compared with other known budgeting procedures and models, such as ZBB, PBBS andcost benefit analyses.

Original languageEnglish
Pages (from-to)297-308
Number of pages12
JournalJournal of the Operational Research Society
Issue number3
StatePublished - 1 Jan 1993


  • Budget planning
  • Network optimization

ASJC Scopus subject areas

  • Modeling and Simulation
  • Strategy and Management
  • Statistics, Probability and Uncertainty
  • Management Science and Operations Research


Dive into the research topics of 'A network optimization model for budget planning in multi-objective hierarchical systems'. Together they form a unique fingerprint.

Cite this