Optimization modeling can determine the most effective product mix that will maximize the residual land value. In contrast to other "optimization methods" that primarily deal with revenues, Developers Research has developed a method that coordinates revenues and costs for each product type. We can adjust the cost structure and allocation of backbone and Bring-ups to continually monitor the profitability of a land plan. Developers Research uses linear regression, multiple regression and Genetic Algorithm tools to determine effective product mixes. In every assignment to date, Developers Research was able to develop a product mix that increased the land residual by a minimum of 15% and in some cases increased the land residual value by 200%.
