IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v18y2000i4p407-414.html
   My bibliography  Save this article

A fuzzy stochastic technique for project selection

Author

Listed:
  • Eric Wong
  • George Norman
  • Roger Flanagan

Abstract

The comparison of two or more risky projects is more of a challenge than the evaluation of one project in isolation. In the numerous decision models and methods suggested in the literature, often it is assumed that the criteria as well as the decision maker's preference or utility function can be crisply defined. Multi-attribute decision aids that permit the consideration of both multi-variables and risks generally have been associated with complex mathematics and heavy consumption of resources. This paper shows how project selection problems can be dealt with when some project attributes are subject to random variations. The method incorporates fuzzy analysis into multi-attribute utility theory. The aggregate utility function for an individual project is derived as a fuzzy number (or interval) which, in turn, yields probabilistic information for stochastic dominance tests. A unique feature of the approach is that it dispenses with the task of selecting probability distributions for aggregate utility functions. A comparison of the proposed method with the expected utility approach was made and the findings showed agreement between the results.

Suggested Citation

  • Eric Wong & George Norman & Roger Flanagan, 2000. "A fuzzy stochastic technique for project selection," Construction Management and Economics, Taylor & Francis Journals, vol. 18(4), pages 407-414.
  • Handle: RePEc:taf:conmgt:v:18:y:2000:i:4:p:407-414
    DOI: 10.1080/01446190050024824
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/01446190050024824
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/01446190050024824?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. S. Meysam Mousavi & Fariborz Jolai & Reza Tavakkoli-Moghaddam, 2013. "A Fuzzy Stochastic Multi-Attribute Group Decision-Making Approach for Selection Problems," Group Decision and Negotiation, Springer, vol. 22(2), pages 207-233, March.
    2. Nina Begičević & Blaženka Divjak & Tihomir Hunjak, 2010. "Decision-making on prioritization of projects in higher education institutions using the analytic network process approach," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(3), pages 341-364, September.
    3. Yohannes Hagos Subagadis & Niels Schütze & Jens Grundmann, 2016. "A Fuzzy-Stochastic Modeling Approach for Multiple Criteria Decision Analysis of Coupled Groundwater-Agricultural Systems," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(6), pages 2075-2095, April.
    4. Bibiana Alarcon & Antonio Aguado & Resmundo Manga & Alejandro Josa, 2010. "A Value Function for Assessing Sustainability: Application to Industrial Buildings," Sustainability, MDPI, vol. 3(1), pages 1-16, December.
    5. Boguslaw Nowak & Maciej Nowak & Tadeusz Trzaskalik, 2011. "Multicriteria decision aiding in project planning using dynamic programming and simulation," RePAd Working Paper Series UQO-DSA-wp2202011, Département des sciences administratives, UQO.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:18:y:2000:i:4:p:407-414. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.