A Fuzzy Approach for Projects Evaluation and Selection; an Iranian Auto Manufacturer Case Study

Iraj Noravesh (), Mohammad Delasay Sorkhab and Faegh Salehi
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Iraj Noravesh: Associate Professor of Accounting Department Faculty of Management University of Tehran; Iran
Mohammad Delasay Sorkhab: Corresponding author; MSc in Industrial Engineering Faculty of Engineering University of Tehran; Iran
Faegh Salehi: MSc in Accounting Faculty of Management University of Tehran; Iran

Iranian Economic Review (IER), 2006, vol. 11, issue 1, 171-185

Abstract: Evaluating and selecting alternatives investment projects needs considering all relevant and important aspects. In traditional methods, the focus is just on tangible monetary criteria. Also in the traditional methods, either all the information's about factors must be known precisely or sufficient objective data must be available for applying probability theory. In this paper, a combinative approach is employed to integrate all monetary factors, subjective non monetary factors and also objective non monetary factors in decision making process of project evaluation and selection. In the proposed approach to deal with uncertainty in monetary criteria and also vagueness of human thought in subjective non monetary criteria, fuzzy cash flow analysis and multi criteria decision making method are applied, respectively. As a case study, this methodology has been applied for evaluation of an Iranian auto manufacturer’s projects. The results depict that the methodology can vastly help decision makers to evaluate projects under vague and uncertain circumstances considering all important criteria.

Keywords: Project evaluation; Fuzzy cash flow; Fuzzy multi criteria decision making. (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:eut:journl:v:11:y:2006:i:1:p:171

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