Resource allocation

From Freepedia

In strategic planning, a resource-allocation decision is a plan for using available resources, especially in the near term, to achieve goals for the future. Or in other words it is the process of allocating resources among the various projects or business units

The plan has two parts: (1) the basic allocation decision; and (2) contingency mechanisms. The basic allocation decision is the choice of which items to fund in the plan (and the level of funding)and which to leave unfunded: the resources are allocated to some items, not to others.

There are two contingency mechanisms: (1) a priority ranking of items excluded from the plan, showing which items to fund if more resources should become available; (2) a priority ranking of some items included in the plan, showing which items should be sacrificed if total funding must be reduced.