OPTIMAL MANAGEMENT OF A RESEARCH AND DEVELOPMENT PROJECT

A SERIES OF MODELS WERE DESIGNED TO AID IN THE EVALUATION AND CONTROL OF AN INDIVIDUAL RESEARCH AND DEVELOPMENT PROJECT. THE PROJECT UNDER CONSIDERATION IS ASSUMED TO INVOLVE COSTS INCURRED OVER A PERIOD (O,T) AND A RETURN EARNED AT T (OR DISCOUNTED TO T) WHEN THE PROJECT IS COMPLETED. IN TWO OF THE MODELS DISCUSSED BELOW, THE COMPLETION TIME T IS REGARDED AS KNOWN; IN TWO OTHERS, T IS TAKEN TO BE A RANDOM VARIABLE WITH A KNOWN DISTRIBUTION. IN TWO MODELS, THE COSTS PER UNIT OF TIME OF OPERATING THE PROJECT ARE ASSUMED TO BE FIXED; IN THE OTHER TWO, COSTS ARE VARIABLE, WITH INCREASED EXPENDITURE RESULTING IN A DECREASED COMPLETION TIME. EACH OF THE FOUR POSSIBLE COMBINATIONS OF ASSUMPTIONS IS TREATED IN A SEPARATE SECTION. THE LAST SECTION CONTAINS A SUMMARY AND DISCUSSION OF RESULTS. /AUTHOR/

  • Supplemental Notes:
    • Vol 17, No 11, PP 679-697
  • Authors:
    • Lucas, R E
  • Publication Date: 1971-7

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Filing Info

  • Accession Number: 00243044
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Aug 15 1971 12:00AM