Allocation of research and development funds: A zero-one goal programming approach

The research and development project selection process is one of the most difficult and important problems faced by management. It is typically complicated by indivisibility of projects and multiple and conflicting objectives, in addition to limitations on funding, facilities, and qualified researchers. In this paper a case example involving a high technology electrical equipment manufacturer is developed to illustrate this problem using zero--one goal programming to accommodate indivisibility of projects in addition to multiple and conflicting goals. The model presented is an attempt to provide managers with a robust tool for allocating scarce resources among research and development projects.