Optimal resource allocation for projects

Out of the opportunities available management must decide which ones will be pursued and how many resources will be assigned to each. Usually, these opportunities (projects) are evaluated for economic feasibility, and then the favorable ones pursued. Several questions arise regarding the allocation of available resources to the approved projects: In which order should the projects be done, or should they be done concurrently? How many resources should be assigned to each project? Given the multitude of factors affecting such decisions, one would expect complex formulas to describe the optimal allocation of resources. Contrary to expectations, the formulas describing optimal allocation are intelligible and practical in use.

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