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Modeling an Uncertain Productivity Learning Process Using an Interval Fuzzy Methodology

Author

Listed:
  • Min-Chi Chiu

    (Department of Industrial Engineering and Management, National Chin-Yi University of Technology, 57, Sec. 2, Zhongshan Rd., Taiping, Taichung City 411, Taiwan)

  • Tin-Chih Toly Chen

    (Department of Industrial Engineering and Management, National Chiao Tung University, 1001, University Road, Hsinchu 300, Taiwan)

  • Keng-Wei Hsu

    (Department of Industrial Engineering and Management, National Chiao Tung University, 1001, University Road, Hsinchu 300, Taiwan)

Abstract

Existing methods for forecasting the productivity of a factory are subject to a major drawback—the lower and upper bounds of productivity are usually determined by a few extreme cases, which unacceptably widens the productivity range. To address this drawback, an interval fuzzy number (IFN)-based mixed binary quadratic programming (MBQP)–ordered weighted average (OWA) approach is proposed in this study for modeling an uncertain productivity learning process. In the proposed methodology, the productivity range is divided into the inner and outer sections, which correspond to the lower and upper membership functions of an IFN-based fuzzy productivity forecast, respectively. In this manner, all actual values are included in the outer section, whereas most of the values are included within the inner section to fulfill different managerial purposes. According to the percentages of outlier cases, a suitable forecasting strategy can be selected. To derive the values of parameters in the IFN-based fuzzy productivity learning model, an MBQP model is proposed and optimized. Subsequently, according to the selected forecasting strategy, the OWA method is applied to defuzzify a fuzzy productivity forecast. The proposed methodology has been applied to the real case of a dynamic random access memory factory to evaluate its effectiveness. The experimental results indicate that the proposed methodology was superior to several existing methods, especially in terms of mean absolute error, mean absolute percentage error, and root mean square error in evaluating the forecasting accuracy. The forecasting precision achieved using the proposed methodology was also satisfactory.

Suggested Citation

  • Min-Chi Chiu & Tin-Chih Toly Chen & Keng-Wei Hsu, 2020. "Modeling an Uncertain Productivity Learning Process Using an Interval Fuzzy Methodology," Mathematics, MDPI, vol. 8(6), pages 1-18, June.
  • Handle: RePEc:gam:jmathe:v:8:y:2020:i:6:p:998-:d:373369
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    References listed on IDEAS

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    2. EMROUZNEJAD, Ali & ROSTAMY-MALKHALIFEH, Mohsen & HATAMI-MARBINI, Adel & TAVANA, Madjid, 2011. "An overall profit Malmquist productivity index with fuzzy and interval data," LIDAM Reprints CORE 2375, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    4. Toly Chen, 2018. "Fitting an uncertain productivity learning process using an artificial neural network approach," Computational and Mathematical Organization Theory, Springer, vol. 24(3), pages 422-439, September.
    5. Erik Brynjolfsson & Daniel Rock & Chad Syverson, 2018. "Artificial Intelligence and the Modern Productivity Paradox: A Clash of Expectations and Statistics," NBER Chapters, in: The Economics of Artificial Intelligence: An Agenda, pages 23-57, National Bureau of Economic Research, Inc.
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