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

Karsu, T. and Morton, Alec (2014) Incorporating balance concerns in resource allocation decisions : a bi-criteria modelling approach. Omega, 44. pp. 70-82. ISSN 0305-0483

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    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.