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Improving the Utility of the Bellcore Consortium

Author

Listed:
  • Bruce Hoadley

    (Analytical Methods and Software Systems, Bell Communications Research, 331 Newman Springs Road, Red Bank, New Jersey 07701)

  • Paul Katz

    (Analytical Methods and Software Systems, Bell Communications Research, 331 Newman Springs Road, Red Bank, New Jersey 07701)

  • Amir Sadrian

    (Analytical Methods and Software Systems, Bell Communications Research, 331 Newman Springs Road, Red Bank, New Jersey 07701)

Abstract

Bellcore, a research and development company owned by the seven regional telephone companies, aims to deliver research, engineering services, technical support, and software systems (R&D) that have maximum utility to its owners. They have different but overlapping R&D needs and different R&D budgets. We developed a 0-1 nonlinear integer programming algorithm that enables them to share costs optimally for different projects, get only the R&D that they need, and stay within their budgets. In 1991, each owner received on average 23 additional existing Bellcore projects at no additional cost. Over all owners, these projects were originally priced at $52.6 million. The algorithm is now part of the Bellcore budget process.

Suggested Citation

  • Bruce Hoadley & Paul Katz & Amir Sadrian, 1993. "Improving the Utility of the Bellcore Consortium," Interfaces, INFORMS, vol. 23(1), pages 27-43, February.
    • Handle: RePEc:inm:orinte:v:23:y:1993:i:1:p:27-43
    DOI: 10.1287/inte.23.1.27
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    Citations

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    Cited by:

    1. George J. Beaujon & Samuel P. Marin & Gary C. McDonald, 2001. "Balancing and optimizing a portfolio of R&D projects," Naval Research Logistics (NRL), John Wiley & Sons, vol. 48(1), pages 18-40, February.
    2. Peter C. Bell & Chris K. Anderson, 2002. "In Search of Strategic Operations Research/Management Science," Interfaces, INFORMS, vol. 32(2), pages 28-40, April.
    3. Aloysius, John A., 1999. "Membership in a research consortium: the project selection game," Journal of Economic Behavior & Organization, Elsevier, vol. 40(3), pages 325-336, November.
    4. Rosenthal, Edward C., 1998. "Information and strategyproofness in joint project selection," Journal of Public Economics, Elsevier, vol. 68(2), pages 207-221, May.
    5. Peter C. Bell & Chris K. Anderson & Stephen P. Kaiser, 2003. "Strategic Operations Research and the Edelman Prize Finalist Applications 1989--1998," Operations Research, INFORMS, vol. 51(1), pages 17-31, February.
    6. Aloysius, John A., 1999. "Risk aggregation and the efficient selection of joint projects by a consortium," Omega, Elsevier, vol. 27(3), pages 389-396, June.

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