Accession Number : AD0702918
Title : OPTIMAL CONTROL OF RESEARCH AND DEVELOPMENT EXPENDITURES.
Descriptive Note : Technical rept.,
Corporate Author : MASSACHUSETTS INST OF TECH CAMBRIDGE OPERATIONS RESEARCH CENTER
Personal Author(s) : Hamilton,Carl W.
Report Date : DEC 1969
Pagination or Media Count : 128
Abstract : A mathematical model is developed to assist the selection and funding of technology projects. The model assigns gamma distributions to the uncertain costs, represents the mission-technology dependencies by parallel-series networks, and considers a weighted sum of mission readiness probabilities as the overall objective. Optimization requires the solution of a mathematical program with a nonconcave objective function and linear constraints. In the single period case, a branch and bound algorithm is developed to find the globally optimal allocation. In the multiperiod case a complete solution can be determined when all costs are exponentially distributed. As the number of projects increase and the planning period lengthens, special decomposition techniques are required and are developed from the theory of discrete optimal control. (Author)
Descriptors : (*RESEARCH MANAGEMENT, COSTS), MATHEMATICAL MODELS, MATHEMATICAL PROGRAMMING, STATISTICAL DISTRIBUTIONS, EXPONENTIAL FUNCTIONS, DECISION MAKING, ALGORITHMS, THESES
Subject Categories : Administration and Management
Distribution Statement : APPROVED FOR PUBLIC RELEASE