Application and Development of a Fuzzy Analytic Hierarchy Process within a Capital Investment Study
AbstractCapital budgeting as a decision process is among the most important of all management decisions. The importance (consequents) of the subsequent outcome may bring a level of uncertainty to the judgement-making process by the decision maker(s) in the form of doubt, hesitancy, and procrastination. This study considers one such problem, namely the selection of the type of fleet car to be adopted by a small car rental company, a selection that accounts for a large proportion of the company¡¦s working capital. With a number of criteria to consider, a fuzzy analytic hierarchy process (FAHP) analysis is undertaken to accommodate the inherent uncertainty. Developments are made to the FAHP method utilised to consider the preference results with differing levels of precision in the pairwise judgements made.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by College of Business, Feng Chia University, Taiwan in its journal Journal of Economics and Management.
Volume (Year): 1 (2005)
Issue (Month): 2 (July)
capital budgeting; degree of fuzziness; fuzzy analytic hierarchy process; sensitivity analysis; uncertainty;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ahn, Byeong Seok, 2000. "The analytic hierarchy process in an uncertain environment: A simulation approach by Hauser and Tadikamalla (1996)," European Journal of Operational Research, Elsevier, vol. 124(1), pages 217-218, July.
- Chang, Da-Yong, 1996. "Applications of the extent analysis method on fuzzy AHP," European Journal of Operational Research, Elsevier, vol. 95(3), pages 649-655, December.
- Buckley, James J. & Feuring, Thomas & Hayashi, Yoichi, 2001. "Fuzzy hierarchical analysis revisited," European Journal of Operational Research, Elsevier, vol. 129(1), pages 48-64, February.
- Thomas L. Saaty, 1986. "Axiomatic Foundation of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 32(7), pages 841-855, July.
- Cheng, Ching-Hsue & Lin, Yin, 2002. "Evaluating the best main battle tank using fuzzy decision theory with linguistic criteria evaluation," European Journal of Operational Research, Elsevier, vol. 142(1), pages 174-186, October.
- Sutardi & bector, C. R. & Goulter, Ian, 1995. "Multiobjective water resources investment planning under budgetary uncertainty and fuzzy environment," European Journal of Operational Research, Elsevier, vol. 82(3), pages 556-591, May.
- Zahir, Sajjad, 1999. "Geometry of decision making and the vector space formulation of the analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 112(2), pages 373-396, January.
- Beynon, Malcolm, 2002. "An analysis of distributions of priority values from alternative comparison scales within AHP," European Journal of Operational Research, Elsevier, vol. 140(1), pages 104-117, July.
- Zhu, Ke-Jun & Jing, Yu & Chang, Da-Yong, 1999. "A discussion on Extent Analysis Method and applications of fuzzy AHP," European Journal of Operational Research, Elsevier, vol. 116(2), pages 450-456, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su).
If references are entirely missing, you can add them using this form.