Determining Optimal Resource Allocations Using Production Models Derived from Efficiency Analysis of Empirical Data.
Abstract
Evaluating the performance of nonprofit organizations and formulating resource allocation policy has long been recognized as a difficult problem for management to solve. This thesis defines the relationships between the terms efficiency, effectiveness, productivity, resource allocation, and capability as it pertains to military organizations. This research studied possible ways in which the recently developed efficiency measurement methodology, Constrained Facet Analysis, might be used in solving the resource allocation problem. The approach taken was that of experimentation with a resource allocation model using a data set that simulated a group of 12 tactical fighter wings each using 2 types of resources, manpower and materiel, and producing 2 types of outputs, sorties and mission capable aircraft days. The resource allocation model consisted of a generalized network model. The methodology pursued by this research consisted of experimentation with the two-input, two-output case; i.e., given that relative efficiencies and apparent rates of productivity can now be measured among a group of related organizations, should available resources be allocated to increase production to some set level? Or, what is the maximum level of production that can be expected? The research concludes with recommendations for field testing the resource allocation model using actual data and the help of knowledgeable managers.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1985
- Accession Number
- ADA161082
Entities
People
- Jose O. Montemayor
Organizations
- Air Force Institute of Technology