| Article ID: | iaor19932093 |
| Country: | United States |
| Volume: | 23 |
| Issue: | 1 |
| Start Page Number: | 27 |
| End Page Number: | 43 |
| Publication Date: | Jan 1993 |
| Journal: | Interfaces |
| Authors: | Hoadley B., Katz P., Sadrian A. |
| Keywords: | communications |
Bellcore, a research and development company owned by the seven regional telephone companies, aims to deliver research, engineering services, technical support, and software systems (R&D) that have maximum utility to its owners. They have different but overlapping R&D needs and different R&D budgets. The authors developed a 0-1 nonlinear integer programming algorithm that enables them to share costs optimally for different projects, get only the R&D that they need, and stay within their budgets. In 1991, each owner received on average 23 additional existing Bellcore projects at no additional cost. Over all owners, these projects were originally priced at $52.6 million. The algorithm is not part of the Bellcore budget process.