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This work is focused on resource allocation to multiple projects with the consideration of resource transfers. A simulated annealing algorithm is developed for the problem of resource allocation in multiple projects. Two algorithm are proposed in this work. In the first stage resources are allocated to the projects and given this allocation the projects are scheduled. In the second stage the resources are transferred between the projects and rescheduling of projects is done to improve the objective function. Only idle resources can be transferred from a less important project to more important project.