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R&D pipeline management: Task interdependencies and risk management


  • Colvin, Matthew
  • Maravelias, Christos T.


Maintaining a rich research and development (R&D) pipeline is the key to remaining competitive in many industrial sectors. Due to its nature, R&D activities are subject to multiple sources of uncertainty, the modeling of which is compounded by the ability of the decision maker to alter the underlying process. In this paper, we present a multi-stage stochastic programming framework for R&D pipeline management, which demonstrates how essential considerations can be modeled in an efficient manner including: (i) the selection and scheduling of R&D tasks with general precedence constraints under pass/fail uncertainty, and (ii) resource planning decisions (expansion/contraction and outsourcing) for multiple resource types. Furthermore, we study interdependencies between tasks in terms of probability of success, resource usage and market impact. Finally, we explore risk management approaches, including novel formulations for value at risk and conditional value at risk.

Suggested Citation

  • Colvin, Matthew & Maravelias, Christos T., 2011. "R&D pipeline management: Task interdependencies and risk management," European Journal of Operational Research, Elsevier, vol. 215(3), pages 616-628, December.
  • Handle: RePEc:eee:ejores:v:215:y:2011:i:3:p:616-628

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    References listed on IDEAS

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    1. repec:eee:transe:v:105:y:2017:i:c:p:1-17 is not listed on IDEAS
    2. Aizemberg, Luiz & Kramer, Hugo Harry & Pessoa, Artur Alves & Uchoa, Eduardo, 2014. "Formulations for a problem of petroleum transportation," European Journal of Operational Research, Elsevier, vol. 237(1), pages 82-90.


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