A Comprehensive Model for R and D Project Portfolio Selection with Zero-One Linear Goal-Programming (RESEARCH NOTE)

Abstract

Technology centered organizations must be able to identify promising new products or process improvements at an early stage so that the necessary resources can be allocated to those activities. It is essential to invest in targeted research and development (R and D) projects as opposed to a wide range of ideas so that resources can be focused on successful outcomes. The selection of the most appropriate projects is the aim of R and D project selection models. The project selection is complicated by many factors, such as vision and preferences of decision makers, allocating the right human resources, interrelationships between projects, and changes over time and success factors that are difficult to measure. In this article we formulate essential factors in R and D project portfolio selection by a mathematical model, which consider a multi- objective function for maximizing corporate benefit through quantitative and qualitative criteria as well as insight and preferences of decision makers and human resource allocation which does not exceed organizations constraints such as planning horizon, available resources and interrelationships between projects.