DocumentCode :
1518597
Title :
Dynamic time-staged model for R&D portfolio planning — A real world case
Author :
Grossman, Dan ; Gupta, S.N.
Author_Institution :
Johnson & Johnson Co., Raritan, NJ, USA
Issue :
4
fYear :
1974
Firstpage :
141
Lastpage :
147
Abstract :
A dynamic, time-staged mixed integer model is currently being used for the selection of industrial long-range R&D portfolio. Input data from research and marketing are processed through logical programs to provide the discounted payoffs, probabilities (Bayesian, parallel strategies), subjective nonmonetary multiple criteria weights, and the matrix for the mathematical programming model. The multiperiod portfolio is revised sequentially for resources exhaustion throughout the planning horizon by the staged introduction of additional projects. Marginal payoff function (additional investments vs. expected payoff) is a by-product for the support of additional resources justification. Mathematical and heuristic techniques used to overcome common difficulties confronted by previously discussed models are presented. Experience with model introduction to management is also discussed.
Keywords :
mathematical programming; modelling; research and development management; discounted payoffs; dynamic time staged model; mathematical programming model; portfolio planning; probabilities; real world case; research and development; subjective nonmonetary multiple criteria weights; Companies; Investments; Mathematical model; Personnel; Planning; Portfolios;
fLanguage :
English
Journal_Title :
Engineering Management, IEEE Transactions on
Publisher :
ieee
ISSN :
0018-9391
Type :
jour
DOI :
10.1109/TEM.1974.6448493
Filename :
6448493
Link To Document :
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