Research Reports from the Department of Operations
Document Type
Report
Publication Date
6-1-1970
Abstract
The primary concern of this dissertation is R&D resource allocation. Although the discussions are directed toward allocating resources to R&D projects, the techniques developed may be applied to any type of project whose characteristics comply with the assumptions imposed upon the models. Since resource allocations to projects are obtained indirectly from the scheduling of the projects, project scheduling plays a significant role in this paper. Project selection, a third problem of concern to R&D management, is also considered, to a lesser extent, throughout the thesis. Projects are assumed to consist of phases that are arranged either in a network fashion or strictly sequentially, such that one phase follows directly after another. Each phase possesses a cost-duration curve, which indicates the money (cost) necessary to complete the phase in a specified amount of time (duration). When this relationship is assumed to be known with certainty, a deterministic model results. When cost and/or duration is a random variable with a known probability distribution, then a stochastic model results. In either case, due dates for projects are given, and penalties are incurred if these due dates are not met or if the monetary allocations are not commensurate with the necessary funding levels. Since technological success of each project is assumed, the time at which such success occurs becomes the scheduling variable of interest. Costs, specifically holding costs for completing projects too early for immediate profitable utilization, which have not previously been considered in R&D planning models, are included in this paper. The objective throughout is maximization of total profits to the R&D organization, subject to technological and resource restrictions.
Keywords
Stochastic processes, Operations research, Research and development projects, Resource allocation, Project management, Project scheduling, Decision making--Mathematical models
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 195
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Friedel, Donald C., "Deterministic and Stochastic R & D Resource Allocation Models" (1970). Research Reports from the Department of Operations. 148.
https://commons.case.edu/wsom-ops-reports/148