Designing a Robust Model for Budgeting on the Basis of the Performance of the Research Groups in Research and Development (R&D) Centers (Case Study: the Defensive R&D Center)

Budgets are approved for paving the way for new research projects in R&D centers. The basis for allocation of the budget needs to be analyzed regarding of organizations’ criteria. One of these criteria can be the performance of research groups and research centers in past projects. It is also necessary that those which fit well the goals and strategies of the organization projects be supported. In this paper, a robust mathematical model is presented on the basis of the Bertsimas and Sim method for the allocation of the budget to the research groups with higher priorities. The results of solving and simulation of the model indicate that along with the increase in uncertainty of model parameters such as estimated project costs, and increasing the level of protection, the degree of deviation from the ideal have been correctly measured. This is an indication of the capabilities of the designed model, and decision-makers can make use of it for better decisions by considering the level of risks and the degree of deviation from the ideal situation. For testing the validity of the model, the budget approved by a defensive research center was examined by it. The results certified the effectiveness of the model from the viewpoint of the managers of the research groups and the research center.