Optimal allocation of resources is determined by using:
A) capital budgeting.
B) linear programming.
C) queuing theory.
D) probability theory.

Question

Quizplus · Accepted Answer

Optimal allocation of resources is generally done using linear programming, which is a mathematical method that allows the allocation of limited resources such as time, money, and staff to be optimized to meet specific goals. Capital budgeting is a method used to determine long-term investment decisions. Queuing theory is used to analyze queues or waiting lines, while probability theory is used to study random events and their likelihood. While all these methods may be important considerations in resource allocation, linear programming is the most effective approach for determining optimal resource allocation.

Optimal Allocation of Resources Is Determined by Using