Milling, Peter M., "Subjective Knowledge Bases in Corporate Policy Making", 1988
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Intelligent behavior involves subjective variables, it is guided by fuzzy goals and constraints, and it applies multi-valued rules of inference to reach its conclusion. Decision or strategy support systems- in order to serve as reliable tools for testing the consequences of alternative courses of action- must reflect these essential aspects of the problem under investigation.The paper presents a corporate model designed for the investigation of a firm's resource allocation strategy. It discusses the applicability of fuzzy set theory to computer simulation in general and to System Dynamics in particular. After qualitative variables and fuzzy goals have been explicitly included, the model exhibits improved performance with respect to behavior and acceptance by management.