Balance in resource allocation problems: a changing reference approach
Author
Erkan, Hale
Advisor
Karsu, Özlem
Date
2018-06Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
Fairness has become one of the primary concerns in resource allocation problems,
especially in settings which are associated with public welfare. Using a pure
e ciency maximizing approach may not be applicable while distributing resources
among entities, hence we propose a novel structure for integrating balance into the
allocation process. In the proposed approach, balance is de ned and measured as
the deviation from a reference distribution determined by the decision maker. We
acknowledge that what is considered balanced by the decision maker might change
with respect to the level of total output distributed. To provide an allocation
policy that is in line with this changing structure of balance, we allow the decision
maker to change her reference distribution depending on the total amount of
output (bene t).
We illustrate our approach using a project portfolio selection problem. We formulate
a mixed integer mathematical programming model for the problem with
maximizing e ciency and minimizing imbalance objectives. The bi-objective
model is initially solved with the epsilon constraint method. However for larger
problem instances this approach fails to nd solutions within reasonable time
limits. Hence we implement metaheuristic algorithms and report on their performance.
As an alternative solution method, an interactive algorithm is presented
and used to nd the most preferred solution of the decision maker. The proposed
resource allocation model provides important insights to decision makers
regarding the tradeo between e ciency and fairness, and provides a useful tool
to incorporate speci c balance concerns into the problem.
Keywords
Decision support systemsBiobjective Resource Allocation Problem
Fairness
Knapsack Problem
Balance