A machine implemented method and system for allocating a storage volume from among a plurality of storage volumes for storing information in a storage system is provided. The storage system maintains a plurality of groups for segregating the plurality of storage volumes based on storage volume utilization at any given time. A storage volume, when available, is selected from a group that was previously used to select another storage volume. After an end of the group has been reached for allocating the other storage volume, and a threshold value for using the same group to allocate storage volumes has been reached, then another group is used to select the next storage volume.