Resource allocation methods for defence and infrastructure systems

Jussi Kangaspunta

Research output: ThesisDoctoral ThesisCollection of Articles


Organizations initiate research and development projects as well as other investments in order to build and maintain long-term capabilities that contribute the attainment of their strategic objectives. Typically they have limited resources and can therefore select only a subset of available investment alternatives when seeking to maximize the overall value which is defined in terms of multiple objectives. These decisions can be challenging due to uncertainties about the future value of investment alternatives, interdependencies between alternatives, and possible conflicting preference statements about the relative importance of the objectives. This Dissertation develops methods to support the allocation of resources to investment alternatives by evaluating portfolios (i.e. combinations) of alternatives. These methods help identify portfolios which are efficient with regard to multiple levels of resource expenditures so that statements from multiple information sources (e.g. expert judgments and simulation models) are transparently taken into account. Furthermore, the methods permit analyses with regard to different scenarios that portray possible states of future and handle incomplete information about the importance of objectives. The proposed resource allocation methods are illustrated by examining problems from defence planning and critical infrastructure risk management. Both of these interconnected application areas are under budgetary pressure while national security threats are taking increasingly diverse forms. The examples show that the developed methods and computational algorithms can be usefully applied. Moreover, the methods are also generic enough to be used in other areas as well. For instance, the energy sector needs to provide sufficient supply while ensuring that the energy production system is resilient and able to recover from shocks.
Translated title of the contributionResurssien allokointimenetelmiä puolustus- ja infrastruktuurijärjestelmille
Original languageEnglish
QualificationDoctor's degree
Awarding Institution
  • Aalto University
  • Salo, Ahti, Supervising Professor
  • Salo, Ahti, Thesis Advisor
Print ISBNs978-952-60-7069-8
Electronic ISBNs978-952-60-7068-1
Publication statusPublished - 2016
MoE publication typeG5 Doctoral dissertation (article)


  • cost-efficiency analysis
  • critical infrastructure risk management
  • defence planning
  • portfolio decision analysis
  • resource allocations.


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