A method for solving the decentralized hierarchal multiple objective decision making problem

In this paper we are considering an Organization with a central unit and several subunits. The central unit has to solve a coordination problem for the whole Organization, which can be stated as: How can the decisions concerning future acts needing scarce resources being at the central unit's dis-posal be coordinated considering multiple objectives of all decision makers? A decomposition principle without employing any information from dual variables is developed first. Next this decomposition principle and a modified STEM version are hybrided to solve the decentralized hierarchical multiple objective decision making problem. The hybrid algorithm is discussed and an illustrative example is given at the end.