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A Decision Process Model of R&D Resource Allocation in Hierarchical Organizations

Author

Listed:
  • E. P. Winkofsky

    (Virginia Polytechnic Institute and State University)

  • N. R. Baker

    (University of Cincinnati)

  • D. J. Sweeney

    (University of Cincinnati)

Abstract

A mathematical model is presented which incorporates many descriptive characteristics of decentralized R&D resource allocation processes. In general it is a member of the class of models referred to as decision process models. In specific it is representative of an R&D resource allocation process involving a number of subunits at three hierarchical levels. An important feature is the model's ability to represent a number of different interlevel information and organizational coordination mechanisms relating subordinate to ordinate and ordinate to superordinate. A series of 0--1 goal programs with preemptive priority factors provide models for each of the subunits. The subunit models are linked through very general information flows. R&D project or portfolio characteristics are passed upward; while R&D goals and/or budgets and associated levels are passed downward. The eventual purpose of this research is to construct a simulator capability suitable for experimentation concerning coordination in a decentralized resource allocation process involving R&D projects. Such a capability would be an important tool for analyzing existing or proposed decision processes and would be useful for policy analysis at the level of both the firm and the federal government. An illustrative experiment is discussed.

Suggested Citation

  • E. P. Winkofsky & N. R. Baker & D. J. Sweeney, 1981. "A Decision Process Model of R&D Resource Allocation in Hierarchical Organizations," Management Science, INFORMS, vol. 27(3), pages 268-283, March.
  • Handle: RePEc:inm:ormnsc:v:27:y:1981:i:3:p:268-283
    DOI: 10.1287/mnsc.27.3.268
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    Citations

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    Cited by:

    1. Farrell E. Jensen, 1985. "Allocating synthesis R & D resources in the agricultural chemicals industry," Agribusiness, John Wiley & Sons, Ltd., vol. 1(3), pages 227-235.
    2. Bitran, Gabriel R. & Tirupati, Devanath., 1989. "Hierarchical production planning," Working papers 3017-89., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    3. Kwak, N. K. & Lee, Changwon, 1998. "A multicriteria decision-making approach to university resource allocations and information infrastructure planning," European Journal of Operational Research, Elsevier, vol. 110(2), pages 234-242, October.
    4. Kwak, N. K. & Lee, Chang W., 2002. "Business process reengineering for health-care system using multicriteria mathematical programming," European Journal of Operational Research, Elsevier, vol. 140(2), pages 447-458, July.
    5. Supachart Iamratanakul, 2013. "The Selection of Project in Rapid Environment’s Industry Using Zero Based Budget," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.

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