Abstract

In an earlier issue of this journal, Charles Hitch [Charles Hitch. 1953. J. Opns. Res. Soc. Am. 1 87.] discussed the problem of selecting criteria for evaluating the outcome of operations, saying, “The only discipline I know which has made any attempt to explore the characteristics of operations criteria and the intimately related question of the relation between lower and higher level sub-optimization is economic theory.” This paper, following Hitch, uses the standard tools of economic analysis to shed some light on the selection of criteria in operational problems. Some aspects of the military allocations problem are examined. For purposes of illustration the analysis deals with allocation in the army, but it applies equally well to all three armed services. Operations Research, ISSN 0030-364X, was published as Journal of the Operations Research Society of America from 1952 to 1955 under ISSN 0096-3984.

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