Fuzzy NCIC

There is a great deal of interest in the use of multicnteria decision making models in the evaluation of capital investment projects. These models allow the user to bring difficult-to-quantify criteria into the investment decision. One example of this type is the nontraditional capital investment cr...

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Bibliographic Details
Published in:The Engineering economist 1998-03, Vol.43 (3), p.203-246
Main Authors: GOGUS, OZERK, BOUCHER, THOMAS O.
Format: Article
Language:English
Subjects:
Capital investments
Costs
Criteria
Decision making
Eigenvectors
Fuzzy logic
Fuzzy sets
Linguistics
Net present value
Studies
Variables
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Summary:There is a great deal of interest in the use of multicnteria decision making models in the evaluation of capital investment projects. These models allow the user to bring difficult-to-quantify criteria into the investment decision. One example of this type is the nontraditional capital investment criteria (NCIC) method. In this paper we extend this method to include imprecision in the evaluation of the importance of criteria. This is done using fuzzy sets, either as triangular fuzzy numbers (TFNs) or as linguistic variables. As in the case of NCIC using crisp sets, we provide consistency checks on the pairwise comparisons of decision makers and interpret the vector weights from the pairwise comparisons in monetary terms.
ISSN:0013-791X
1547-2701
DOI:10.1080/00137919808903197