ENVIRONMENTAL

RESOURCE ALLOCATION
REPORTED BY: JAVELIN F.
ESPINAS
PA 208
 RESOURCE ALLOCATION

- is the assignment of available resources to various

uses.
-is the scheduling of activities and the resources
required by those activities while taking into
consideration both the resource availability and the
project time.
 DEMAND ESTIMATION

• Demand Estimation in managerial economics

refers to predicting how consumers will behave
in relation to your products and services in the
future.
 METHODS OF DEMAND ESTIMATION
*Conduct a survey-which often includes focus groups and direct
interviews with customers.
Surveys are useful because you are obtaining information from your
target market and they can tell you their fears, hopes, and future
plans. However, there are some drawbacks with this method because
customers may tell you what they will do in the future and
circumstances could quickly change those purchasing plans. It’s also
difficult to get a truly representative sample when you conduct
surveys.
 *Regression Analysis in which a dependent variable such as
demand for a product or service is compared to an independent
variable such as price. Regression analysis relies heavily on
statistics to create a comprehensive picture of future consumer
demand based on specific independent variables. A basic
regression analysis model will only make comparisons between
the dependent variable and one independent variable. A more
complex regression analysis model will make comparisons
between the dependent variable and multiple independent
variables.
 DEMAND ESTIMATION
CONSIDERATIONS
Regardless of the steps in demand estimation that you
use, it’s important to understand that this process can
help you when it comes to pricing and production.
 WHAT IS SPATIAL INTERACTION?

Spatial interaction is the flow of products for example,

goods, people, services and information among places in
response to localize, supply and demand relationship that
is often expressed over a geographical space.
 THREE PRINCIPLES OF SPATIAL
INTERACTION
• Complementarity - (a deficit of a good in one
place
and a surplus in another)
• Transferability - (possibility of transport of goods
or products at a cost that the market will bear)
• Intervening opportunities - (where similar goods
or products is not available at a closer distance.
 COMPLEMENTARITY
Traditionally, it was assumed that interaction between places
developed because of area differentiation (the fact that places
differ from another). Although, this is true to a certain extent,
but mere differentiation never produce interaction by itself.
For example, we have only to consider the many different part
of the world which have no interaction of any kind with one
another. For two places to interact there must be a demand in
one place and a supply in another. The demand and supply
must be specifically complementary.
 TRANSFERABILITY
This is concerned with the friction of distance measured in
real time and money cost. If the time and money cost of
traversing a distance are too high, the movement will not
take place despite perfect complementarity and the absence
of intervening opportunities. Instead of reaping the benefit of
interaction or maintain their status quo and refuse to
exchange the life they know. Thus if the goods cannot be
moved because of high cost of movement, other goods will be
substituted if possible or with just so without. Transferability
differs over space between classes and modes of movement.
 INTERVENING OPPORTUNITIES
It is important to note that complementarity between places can
generate exchange only in the absence of intervening
opportunity. For instance, if we are considering the patterns for
movement of goods from point A to B, we have to also consider
another place known as point C between them which might acts
as an intervening origin or an alternative destination.
 EXAMPLES OF SPATIAL
INTERACTION

• The main examples of spatial

interactions include:
• Movement of people
• Movement of goods and services
• Movement of information
 WHY DO PEOPLE MOVE?
Movement of people- in every age and at every spatial scale,
population are on the move in a continuing effort to reach the
peak of every changing opportunity surface. It is the difference
between present and perceived alternative opportunity that
triggers decisions to move; when the perceived difference
becomes great and no obstacles stands in the way, then
migration takes place.
 • Movement of goods and services - this involves the
movement of goods and services from point of production to
the point of consumption. In the movement of goods, a
product moves from the factory to the consumers so as to
maximize its net delivery price. For his reason, the factory
serves as the nearby market first to save transport cost, then
serving those farther away. All commodity and service
movement can be evaluated in terms of complementarity,
supply and demand areas, presence or absence of intervening
opportunity and transferability of goods and services.
Movement of information- information consists of
new facts, ideas, data and routine information for
example, people, goods and services. Information
flows from place to place, moving from place of
production to demand areas. Those who sent the
most messages get most of the return contacts. A
tendency exists for flows to run from places of
abundant to areas of effective demand, and effective
pulls are exacted at each destination.
 SPATIAL ORGANIZATION
Spatial organization refers to the arrangement of
physical and human objects on the Earth's surface.
Points, lines, areas and volumes are the four geometric
features with which spatial organization can be easily
described. 
The descriptive process of spatial organization uses
concepts such as location, distance, direction, density,
and arrangement (linear, grid-like) to capture spatial
relationships.
 -END OF REPORT-
Thank You and God bless