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

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1 Author(s)
Schmidt, R.L. ; Carlson Sch. of Manage., Minnesota Univ., Minneapolis, MN, USA

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

Published in:

Engineering Management, IEEE Transactions on  (Volume:40 ,  Issue: 4 )

Date of Publication:

Nov 1993

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