Once some engineers from the veneer trust laboratory came to me for consultation with a quite skilful presentation of their problems. Different productivity is obtained for veneer-cutting machines for different types of materials; linked to this the output of production of this group of machines depended, it would seem, on the chance factor of which group of raw materials to which machine was assigned. How could this fact be used rationally?
The university immediately published my pamphlet, and it was sent to fifty People’s Commissariats. It was distributed only in the Soviet Union, since in the days just before the start of the World War it came out in an edition of one thousand copies in all.
In our time mathematics has penetrated into economics so solidly, widely and variously, and the chosen theme is connected with such a variety of facts and problems that it brings us to cite the words of which are very popular in our country: "One can not embrace the unembraceable". The appropriateness of this wise sentence is not diminished by the fact that the great thinker is only a pen-name.
In planning the idea of decentralization must be connected with routines of linking plans of rather autonomous parts of the whole system. Here one can use a conditional separation of the system by means of fixing values of flows and parameters transmitted from one part to another. One can use an idea of sequential recomputation of the parameters, which was successfully developed by many authors for the scheme of Dantzig-Wolfe and for aggregative linear models.
The accounting methods based on mathematical models, the use of computers for computations and information data processing make up only one part of the control mechanism, another part is the control structure.