multiscale decision-making

Multiscale decision-making, also referred to as multiscale decision theory (MSDT), is an approach in operations research that combines game theory, multi-agent influence diagrams, in particular dependency graphs, and Markov decision processes to solve multiscale challenges[http://science.energy.gov/~/media/ascr/pdf/research/am/docs/Multiscale_math_workshop_3.pdf Multiscale Mathematics Initiative: A Roadmap] in sociotechnical systems. MSDT considers interdependencies within and between the following scales: system level, time and information.

Multiscale decision theory builds upon decision theory and multiscale mathematics. Multiscale decision theory can model and analyze complex decision-making networks that exhibit multiscale phenomena. The theory's results can be used by mechanism designers and decision-makers in organizations and complex systems to improve system performance and decision quality.

Multiscale decision theory has been applied to manufacturing enterprise enterprises,{{cite journal | last1 = Wernz | first1 = C. | last2 = Deshmukh | first2 = A. | year = 2007 | title = Decision Strategies and Design of Agent Interactions in Hierarchical Manufacturing Systems | journal = Journal of Manufacturing Systems | volume = 26 | issue = 2| pages = 135–143 | doi=10.1016/j.jmsy.2007.10.003}}{{cite journal | last1 = Wernz | first1 = C. | last2 = Deshmukh | first2 = A. | year = 2010 | title = Multiscale Decision-Making: Bridging Organizational Scales in Systems with Distributed Decision Makers | journal = European Journal of Operational Research | volume = 202 | issue = 3| pages = 828–840 | doi=10.1016/j.ejor.2009.06.022}} service systems,{{cite journal | last1 = Wernz | first1 = C. | last2 = Henry | first2 = A. | year = 2009 | title = Multi-Level Coordination and Decision-Making in Service Operations | journal = Service Science | volume = 1 | issue = 4| pages = 270–283 | doi=10.1287/serv.1.4.270| doi-access = }} supply chain management,{{cite journal | last1 = Henry | first1 = A. | last2 = Wernz | first2 = C. | year = 2015 | title = A Multiscale Decision Theory Analysis for Revenue Sharing in Three-Stage Supply Chains | journal = Annals of Operations Research | volume = 226 | issue = 1| pages = 277–300 | doi=10.1007/s10479-014-1735-y}} healthcare,[https://www.researchgate.net/profile/Christian_Wernz/publication/280937533_Aligning_Incentives_in_Health_Care_A_Multiscale_Decision_Theory_Approach/links/55ccd7d208aebebb8f5779da.pdf?origin=publication_detail&ev=pub_int_prw_xdl&msrp=mc3WuAURvCsZdXwILOYGGiF1Cg-1Fb80eXnlcteV-2ul0v7VShlai5YI8W8dnDODQnrUq7OeCfGleFEp32LpBQ.o-xPiLgepmggWWsCzSEsKKetFLw-Wc96HP450Ci5bxHPdh2KVTwBbDbKtXtnUSuM9_4BlEamgcCI2H7VJ3zQLw.iFZPYLyBiQR8eEZQXtDTViLF4hFhgL_788UWEH40DNUkcI6CEJnOMc2eUtmaKOqBjBpPr45vgnmTAbdXrsEHIw Zhang, H., Wernz, C., Slonim A.D. (2015) Aligning Incentives in Health Care: A Multiscale Decision Theory Approach. EURO Journal on Decision Processes (in press).] systems engineering,[https://www.nsf.gov/awardsearch/showAward?AWD_ID=1549896&HistoricalAwards=false NSF Award #1549896, EAGER: Advancing the Foundations of Systems Engineering through Multiscale Decision Theory] among others. In healthcare, for example, MSDT has been used to identify multi-level incentives that can improve healthcare value (quality of outcomes per dollar spent). The [http://www.msdm.ise.vt.edu/index.html Multiscale Decision Making Laboratory] at Virginia Tech directed by Dr. Christian Wernz is working at the forefront of MSDT theory and applications.

Multiscale decision theory is related to:

• Multiscale modeling
• Decision analysis
• Cooperative distributed problem solving
• Decentralized decision making