R&D Project Selection at Northbanctec Inc

Abstract

Suitable as an assignment or as an exam case, this short case is effective in illustrating the use of linear and integer programming in an assignment problem, wrapped around R&D project selection in a global IT firm. A twist in the case requires the use of binary variables to implement certain logical conditions on which projects can be undertaken by which project teams. The case is suitable for graduate or advanced undergraduate courses or modules on optimization, decision models, management science and the like, both for class discussion and as a part of assignment or exam. A spreadsheet is available to enhance student learning. Excerpt UVA-QA-0762 Rev. Jun. 14, 2011 R&D Project selection at NorthBancTec Inc. NorthBancTec Inc. was a high-end boutique IT firm. Headquartered in Washington, D.C., NorthBancTec had three teams: in Georgetown (United States), in Dubai (United Arab Emirates), and in Novosibirsk (Russia). Because of its small size, NorthBancTec had to be very selective in choosing R&D projects. Table 1 lists the possibilities it had identified for the upcoming year. Table 1. Possible projects, their type, and their projected net benefit. . . .