Multi-objective new product development by complete Pareto front and ripple-spreading algorithm

Abstract

Given several different new product development projects and limited resources, this paper is concerned with the optimal allocation of resources among the projects. This is clearly a multi-objective optimization problem (MOOP), because each new product development project has both a profit expectation and a loss expectation, and such expectations vary according to allocated resources. In such a case, the goal of multi-objective new product development (MONPD) is to maximize the profit expectation while minimizing the loss expectation. As is well known, Pareto optimality and the Pareto front are extremely important to resolve MOOPs. Unlike many other MOOP methods which provide only a single Pareto optimal solution or an approximation of the Pareto front, this paper reports a novel method to calculate the complete Pareto front for the MONPD. Some theoretical conditions and a ripple-spreading algorithm together play a crucial role in finding the complete Pareto front for the MONPD. Simulation results illustrate that the reported method, by calculating the complete Pareto front, can provide the best support to decision makers in the MONPD.