Developed by Radford University to overcome the inadequacies of an acquisition allocation system based on faculty demand, this updated allocation formula considers factors of undergraduate credit person hours, number of declared undergraduate majors, graduate credit person hours, number of graduate majors, average cost weighting, importance of books over serials, and local library use, to produce an allocation index for the purchase of library materials for a given subject field. Eleven charts are presented to illustrate the application of the formula to the 1981-82 academic year funding allocations. The evolution of the formula is traced from its original use during the 1975-76 academic year. (RAA)