Strategic Project Resource Allocation

Process Improvement Projects

Upgrade Projects

New Product Development Projects

Allocation $($Target$)$: $$14$M

Allocation $($Target$)$: $$10$M

Allocation $($Target$)$: $$24$M

Project

Budget Required $($$M$)$

Project

Budget Required $($$M$)$

Project

Budget Required $($$M$)$

G

$2\mathrm{.}1$

B

$2\mathrm{.}9$

F

$6\mathrm{.}8$

A

$3\mathrm{.}4$

E

$6\mathrm{.}4$

C

$2\mathrm{.}9$

D

$1\mathrm{.}9$

I

$2\mathrm{.}4$

J

$5\mathrm{.}8$

H

$0\mathrm{.}5$

K

$4\mathrm{.}2$

L

$1\mathrm{.}3$

TOTAL:

$9\mathrm{.}2$

TOTAL:

$11\mathrm{.}7$

TOTAL:

$19\mathrm{.}7$

Figure $6$ Strategic Project Resource Allocation Table $($FY $20$XX$)$

Orthex Inc. has adopted a resource bucket approach to plan their project investments. The results of their planning efforts are presented in Figure $6.$ The projects in each bucket have been prioritized using a scoring model and are listed in priority from first to last in each bucket. Consider the information in Figure $6.$ Which of the following is a valid observation or conclusion regarding this project portfolio?

Group of answer choices

Based on the current allocation, Project I will not be funded.

The Upgrade Projects Bucket received the largest resource allocation among the competing buckets in this portfolio selection exercise.

If the allocation made to the Process Improvement bucket was reduced by $$4$M$,$ then project A should be cut from the project portfolio.

Based on the current resource allocation, all $12$ of the projects in this portfolio can be funded.