u/DryTwo2680

​Hi everyone,

​I am currently in Period 2 of a Markstrat simulation and I need expert advice on budgeting for an R&D project (PLOOP2) intended to modify our existing brand LOOP for the Professionals segment.

The Situation:

I have exhausted my Online Queries for this round and must now allocate the R&D budget "blind." I am trying to balance a performance increase with a higher Base Cost to ensure completion within this period.

Previous Benchmark (Online Query Data):

  • Specs: Features 15 | Design 9 | Battery 70 | Display 28 | Power 65
  • Requested Base Cost: $150
  • Estimated Budget: $1,610k
  • Minimum Base Cost: $144

New Target Configuration (PLOOP2):

  • Specs: Features 15 | Design 9 | Battery 69 | Display 30 (+2) | Power 70 (+5)
  • Proposed Base Cost: $155 (increased from $150 to reduce R&D pressure)
  • Proposed Budget Allocation: $1,700k

My Doubts:

  1. ​Is a $1,700k allocation sufficient to cover the +5 increase in Power and +2 in Display, considering I have raised the Base Cost to $155?
  2. ​Given the "15% overestimation rule" for Online Queries, my previous estimate of $1,610k suggests a real cost of roughly $1,400k. Does the $300k "cushion" plus the $5 Base Cost relief safely cover the added technical complexity?
  3. ​Would you recommend bumping the budget to $1,850k just to be safe, or is $1,700k a mathematically sound bet in this scenario?

​I want to avoid the project remaining "Incomplete," as missing the launch window for the Professionals segment would be a significant strategic setback.

​Thanks in advance for your insights!

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u/DryTwo2680 — 1 month ago