The purpose of this thesis is to examine the advantages and disadvantages of centralized versus decentralized allotments in the Naval Surface Reserve Force. This research will assist the Reserves in determining which system offers the most efficient use of diminishing resources. A literature review on private and government sector systems was completed. Interviews were conducted with key personnel at echelons two, three, and four. The next step was to establish an historical background of the Naval Surface Reserve Force and a baseline of the Reserve Personnel Navy (RPN) and Operations and Maintenance Navy Reserve (O & MNR) allotments. The resultant analysis explains the advantages and disadvantages of the two allotments. If the RPN allotment were decentralized, it would allow responsibility at a lower level, more efficient utilization of funds, and a better identification of actual costs. Decentralization of the RPN allotment to the echelon four command level would entail additional costs for manpower, training, and Management Information Systems. It is recommended that some portions of the RPN allotment be lowered to the echelon four command level.