Among the problems encountered in the design of an optimal military supply system, the question of an efficient priority or allocation system looms as one of major importance. This has been generally recognized by serious students of military supply, since the breakdown of priority systems has proved a major source of difficulty to the military in past emergencies. 1
The general priority question and the related problems of allocatiops and limitational orders are, however, of a somewhat greater scope than merely their application to the control of military supply or war production: they are, in fact, central to a number of related problems in theoretical and applied economics. While the solution of the problem of efficient allocation @ economics in its broadest sense, that science has concentrated a disproportionate share of its attention on the allocating function of the price system. In many instances, howeverfor example, in the operation of a Socialist or centrally-controlled economy, in consumer rationing, in production scheduling, or in the choice between alternative investment plans within a firmthe allocating function of the price system is either ineffective, orthe general caseis not completely superseded but must be performed in conjunction with other factors. problem, and it is precisely in this case that our knowledge of the theory which underlies the operation of the system is most d e f i ~i e n t . ~ * * *