Decentralized descriptor approach to network equilibrium of a food production sector

In recent years, a large number of computer based models have been developed to help decision making in large scale economic systems. In ALINET, a network model for the analysis of energy use in the food processing and distribution sector, the descriptor variable approach has been used for determining the steady state flow of commodities through the system when decentralized decisions are taken into account. It is shown that supply functions can be determined at the subsystem level, thus decomposing the problem of solving for equilibrium. The approach takes advantage of special structural properties of large scale economic systems with chain structure. The network modeling system is used as a tool for analyzing wheat production and processing in a Yugoslav enterprise.