A branch‐and‐bound algorithm for scheduling of new product development projects

In this paper, we consider scheduling problem in a new product development project. Each research and development project consists of a set of activities in which each activity may be executed in several ways. Each way of execution of an activity is a different technology, called an alternative technology, which may fail due to technical risks. In this work, we focus on alternative technologies for scheduling activities to maximize the expected net present value. We assume that the activity payoff is obtained as soon as any single technology is completed successfully. Therefore, we analyze the problem and develop a two‐phase solution procedure, consisting of a branch‐and‐bound algorithm and a recursive search procedure. The efficiency of the proposed algorithm has been evaluated on a set of randomly generated test instances.