Optimal reallocation of R&D money under budget decrement

There sometimes arises in R&D (and other) management the necessity to revise the current allocation of R&D money among projects because of a decrement in the total budget appropriated for research. What is usually required in such circumstances is a quick computational procedure (though not necessarily 100 percent accurate) based on a minimum of input data. New constraints expressing minimum funding to be given to each project so as to maintain stability in personnel or satisfy prior commitments must also be taken into consideration. A simple algorithm is developed on the assumption that the current allocation is optimal at the original budget level. Using the Kuhn-Tucker theory in nonlinear programming, it is shown that this algorithm reaches the revised optimal solution in a finite number of iterations.