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Incorporating balance concerns in resource allocation decisions: A bi-criteria modelling approach

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  • Karsu, Özlem
  • Morton, Alec

Abstract

We consider resource allocation problems where inputs are allocated to different entities such as activities, projects or departments. In such problems a common goal is achieving a desired balance in the allocation over different categories of the entities. We propose a bi-criteria framework for trading balance off against efficiency. We define and categorise indicators based on balance distribution and propose formulations and solution algorithms which provide insight into the balance-efficiency tradeoff. We illustrate our models by applying them to the data of a portfolio selection problem faced by a science funding agency and to randomly generated large-sized problem instances to demonstrate computational feasibility.

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  • Karsu, Özlem & Morton, Alec, 2014. "Incorporating balance concerns in resource allocation decisions: A bi-criteria modelling approach," Omega, Elsevier, vol. 44(C), pages 70-82.
    • Handle: RePEc:eee:jomega:v:44:y:2014:i:c:p:70-82
    DOI: 10.1016/j.omega.2013.10.006
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