SIMPLIFIED APPROACH TO THE CHOICE OF THE NUMBER OF ORGANIZATION LEVELS.

The proposed approach relies on two main ideas: to give a global model for each level; to pursue the objective of the hierarchical system in a step wise manner, by adding at each step a level if this implies an improvement in the objective function. To show how the approach works a static model is proposed which may conveniently be used to qualitatively analyze a system with one production and several organization levels.