Parkinson’s Third(?) Law Size leads to complexity Complexity leads to decay

Problem 10.2 How many units to sell (x*)? How best to produce x*? Solve the problem all at once? Solve it in stages? The marketing problem The production problem

Solve it all at once: 6 relations Labor Output Material Total Cost Total Revenue Profit

Solve the marketing problem: 4 relations (Production Must Transmit its Cost Function) Output Total Revenue Total Cost Profit

Solve the production problem: 4 relations Marketing must transmit output requirement Labor Input Output Req’rmt Material Input Total Cost

Complexity and Difficulty Suppose difficulty of problem solution increases as the square of the number of relations Then, Solving problem all at once  62 = 36 Solving it in two stages  42 + 42 = 32 Dividing decision-making into easy parts is often most efficient Divisionalization