Optimization of Resource Allocation for Software Development Teams

Sammanfattning

Resource allocation is a central aspect of project management, and project managers are continuously exploring the most efficient way to allocate re- sources. Traditionally, the objective within resource allocation has been to minimize cost through different approaches, such as mathematical algorithms using linear programming. Instead, this thesis explores the possibility of an algorithm to optimize resource allocation based on the competences and avail- abilities of software developers. Using mixed integer programming (MIP), de- veloper competences and project requirements are modeled into vectors. A binary decision variable is used to determine whether a developer is to be as- signed to a project. The goal of the algorithm is to enhance efficiency when matching available human resources to project requirements.The results show that the algorithm developed in this study performs effec- tively. However, challenges remain, particularly in incorporating flexibility within the algorithm. Soft variables, such as team dynamics, are difficult to model when making decisions data-driven. Therefore, this study concludes that the algorithm is a good indicator for decision making, but should not be used as a sole method for resource allocation.