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Operations Research's interest in systems is confined to normative aspects of systems which are at least partially self-controllable. A mathematical scheme is developed for representing the structure and behavior of such systems. By use of this scheme it is possible to isolate and measure inefficiencies caused by structure, communications, decision making, and by any combination of these. The effect of structure on inefficiency due to communications and decision making is also subject to analysis. Finally, two methods of centralized control of "less-than-optimally" structured systems are described: adjustment of parameters and the use of constraints.
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Sengupta et al. (1965) studied this question.
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