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"Resource Allocation Decisions" in Advances in Decision Analysis: From Foundations to Applications : Cambridge University , 2007


Cambridge University

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From the document: "Organizations typically have more good ideas for projects than they have resources available to pursue those ideas. Decision analysis can provide practical guidance to the organization on how to get the maximum benefit from those limited resources. This chapter reviews methods for prioritizing projects using mathematical optimization or benefit-cost ratios in concert with standard decisionanalysis and risk-analysis tools. These tools include multiattribute utility and value models, decision trees, influence diagrams, and Monte Carlo simulation. To illustrate issues that arise in implementing these approaches in organizations, the use of resource allocation models in hospital capital budgeting is described at length. The chapter concludes with a call for more research on the use of decision analysis in organizational settings."

Authors - Kleinmuntz, Don N.



Kleinmuntz, Don N.


Cambridge University


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