Whitestone Report: A Model for Allocating M&R Funds in a Multiple-Site Organization

SANTA BARBARA, CA–March 29, 2001 - The allocation of maintenance funds among multiple sites is often based on incomplete information and ad hoc judgement, even among the largest organizations. For the U.S. Air Force, Whitestone analysts specified an allocation model that takes into account size, condition, rate of use, and location in determining the appropriate share ot total funds. Experimentation with the model indicated that facility condition had a relatively small influence relative to facility size. It was also found that a model based on objective need may be only the first step in realizing a distribution of funds that incorporates all organizational priorities.

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Whitestone Research, headquartered in Santa Barbara, California, specializes in applied economic research and software development. Whitestone products and services are used every year by hundreds of major corporations, government agencies, and public and private institutions.

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