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Dynamic Time‐Staged Model for R&D Portfolio Planning—A Real World Case
Author(s) -
GROSSMAN DOV
Publication year - 1975
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.1975.tb01358.x
Subject(s) - portfolio , time horizon , operations research , computer science , selection (genetic algorithm) , stochastic game , heuristic , mathematical optimization , mathematical economics , economics , range (aeronautics) , project portfolio management , mathematics , project management , artificial intelligence , engineering , financial economics , aerospace engineering , management
— 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.