With the growth of circuits and higher testability demands there is a need to speed up the design to shorten the time-to-market delay. But ensuring this demands many parameters have to be taken into account. The most appropriate algorithm are based on evolutionary approach, since they are able to investigate the wide range of possible solutions and give near optimal solution in a relatively short time. This paper presents the new Allocation-Based Scheduling (ABS) algorithm. This algorithm improves the part of the chip design process - scheduling and allocation. The algorithm bases on genetic scheduling algorithm, but due to its cost function it is able to produce the optimal schedules of different input graphs. It turned out that the ABS algorithm made the best solutions in all tests and is therefore very appropriate for use in chip designing.