Risk Evaluation in Resource Allocation

Abstract

Conventional resource allocation procedures implicitly assume that the availability of resources is certain. In real life situations, their availability is, at times, uncertain. A Risk Evaluation Model (REM) is proposed to systematically evaluate the uncertainty of resource availability and generate several alternatives having varying project completion time, cost, and performance probability. REM can aid a contractor in “bid/no‐bid” decision‐making, an entrepreneur in investment decision‐making, and a consultancy organization in corporate planning.