Optimizing performance funding at Kutztown University of Pennsylvania

Kutztown University (KU) is one of 14 public universities that comprise the Pennsylvania State System of Higher Education (PASSHE). Each fiscal year, the 14 state universities compete for funds based on their performance relative to 51 criteria defined by PASSHE. In this paper, we will discuss a mixed zero-one integer programming model that was developed by a team comprised of faculty and administrators at KU for the purpose of optimizing KU’s performance funding allocation. Implementation of this model and its results will be highlighted. OR Insight (2009) 22, 45–53. doi:10.1057/ori.2008.3