TY - JFULL AU - Chan-Sik Kim and Jong-Seong Kim and Se Won Lee and Hoo-Gon Choi PY - 2013/9/ TI - Minimizing Risk Costs through Optimal Responses in NPD Projects T2 - International Journal of Industrial and Manufacturing Engineering SP - 1625 EP - 1631 VL - 7 SN - 1307-6892 UR - https://publications.waset.org/pdf/16069 PU - World Academy of Science, Engineering and Technology NX - Open Science Index 80, 2013 N2 - In rapidly changing market environment, firms are investing a lot of time and resources into new product development (NPD) projects to make profit and to obtain competitive advantage. However, failure rate of NPD projects is becoming high due to various internal and external risks which hinder successful NPD projects. To reduce the failure rate, it is critical that risks have to be managed effectively and efficiently through good strategy, and treated by optimal responses to minimize risk cost. Four strategies are adopted to handle the risks in this study. The optimal responses are characterized by high reduction of risk costs with high efficiency. This study suggests a framework to decide the optimal responses considering the core risks, risk costs, response efficiency and response costs for successful NPD projects. Both binary particles warm optimization (BPSO) and multi-objective particle swarm optimization (MOPSO) methods are mainly used in the framework. Although several limitations exist in use for real industries, the frame work shows good strength for handling the risks with highly scientific ways through an example. ER -