Optimal strategies for acquiring advanced engineering technologies with linked resources

Abstract

The mixed integer programming model (MILP) is formulated, which combines: long-term, aggregate capacity planning for multilevel engineers and engineering administrators and long-term capacity planning for multilevel engineering equipment requirements. It allows the engineering personnel and equipment to be completely internal to the firm needing the technological capability (purchased, developed or hired by the firm), completely external (owned or hired by an engineering consulting firm), or some intermediate alternative. It permits higher-level internal engineers and technical equipment to be used for lower-level assignments as well as for those at their own level, and it allows the internal and external personnel and equipment to have different performance levels. A comprehensive example problem is provided, and an optimal solution is obtained and assessed. Future research extensions are presented.<>