Description: The allocation model is a mathematical approach used to distribute limited resources among various competing activities or projects. This model is based on optimization, seeking the best way to allocate resources to maximize efficiency or minimize costs. In the context of financial operations (FinOps) and cloud cost optimization, the allocation model enables organizations to manage their spending on cloud services more effectively, ensuring that resources are utilized in the most cost-effective manner. Key features of this model include identifying key variables, formulating constraints, and seeking optimal solutions. Its relevance lies in its ability to help companies make informed decisions about resource allocation, which is crucial in an increasingly competitive and ever-changing business environment. Additionally, the allocation model can be applied in various areas, from project management to production planning and financial management, making it a versatile tool in process management.
