Research Reports from the Department of Operations
Document Type
Report
Publication Date
1-31-1968
Abstract
$C is to be allocated among n "approaches" such that the expected probability of successful completion of at least one of the n approaches is maximized. The ith approach involves a cost ci which is a random variable with probability density function $\i_ and has a probability P_i(c_i) of success. Faced with this uncertainty in cost, the R & D manager can either: a) Choose a large number of approaches to support but allocate to them small amount of money or b) Choose a small number of approaches to support but allocate to them large amount of money. This allocation problem is mathematically analyzed to yield sufficient conditions under which policy b) is better.
Keywords
Operations research, Mathematical optimization, Research and development projects, Resource allocation
Publication Title
Technical Memorandums from the Department of Operations, School of Management, Case Western Reserve University
Issue
Technical memorandum no. 102
Rights
This work is in the public domain and may be freely downloaded for personal or academic use
Recommended Citation
Chidambaram, T. S., "Optimality of Full-Funding Strategies in R & D Allocation Problems" (1968). Research Reports from the Department of Operations. 400.
https://commons.case.edu/wsom-ops-reports/400