Weight Based Funds Allocation Algorithm

This paper describes an algorithm for making decision on allocation of funds to most deserving among competing applicants. Funds are consumable resource in nature, which are required by organization to execute their projects/schemes, especially government schemes. The algorithm considers multiple decision making factors to allocate weights to applicants. Based on the weight assigned and probability factor of successful implementation of proposed project, algorithm places applicant into one of the three levels viz level 1, level 2 or level 3. Level 1 category applicants are allocated 100 percent funds if sufficient funds are available, otherwise weighted or proportionate funds. Level 2 category applicants are allocated weighted funds requirement and level 3 applicants are found ineligible for availing funds and hence denied allocations. On simulating the algorithm in MatLab, it has been found that level 1 category applicants are given priority over level 2 category applicants. This algorithm is suitable where multiple applicants apply for funds from multiple categories of sources. Major advantage is that it considers past experiences of applicant in implementing projects.