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Advisor(s)
Abstract(s)
We propose a tool for managing tasks of Research and Development (R&D) projects. We define an R&D project as a network of tasks and we assume that different amounts of resources may be allocated to a task, leading to different costs and different average execution times. The advancement
of a task is stochastic, and the management may reallocate resources while the task is being performed,according to its progress. The operational cash flows depend on the task completion time, and their expected values follow a stochastic process. We consider that a strategy for completing a task is a set of rules that define the level of resources to be allocated to the task at each moment. We discuss the evaluation of strategies for completing a task, and we address the problem of finding the optimal
strategy
Description
Keywords
R&D task management and evaluation Real options Stochastic models Simulation Optimal decisions