A model for R&D project selection with combined benefit, outcome and resource interactions

Author

Schmidt, Robert L.

Author_Institution

Carlson Sch. of Manage., Minnesota Univ., Minneapolis, MN, USA

Volume

40

Issue

4

fYear

1993

fDate

11/1/1993 12:00:00 AM

Firstpage

403

Lastpage

410

Abstract

Capital budgeting of R&D projects is complicated by several types of interactions. Three types of interactions are generally recognized to occur within a set of projects: benefit interactions, resource interactions, and outcome interactions. The author presents a model that accounts for the combined effect of benefit, outcome, and resource interactions within a single set of projects. The model also allows for the allocation of several different resources. A branch and bound algorithm is presented to solve the resulting nonlinear integer program with multiple quadratic constraints

Keywords

economics; integer programming; nonlinear programming; project management; research and development management; R&D project selection; benefit interactions; branch and bound algorithm; economics; management; model; multiple quadratic constraints; nonlinear integer program; outcome interactions; resource interactions; Constraint optimization; Costs; Decision theory; Flexible manufacturing systems; Industrial engineering; Portfolios; Proposals; Research and development; Resource management; Virtual manufacturing;

fLanguage

English

Journal_Title

Engineering Management, IEEE Transactions on

Publisher

ieee

ISSN

0018-9391

Type

jour

DOI

10.1109/17.257733

Filename

257733