Fuzzy multi-criteria decision-making procedure for evaluating advanced manufacturing system investments

Karsak E., Tolga E.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, vol.69, no.1, pp.49-64, 2001 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 69 Issue: 1
  • Publication Date: 2001
  • Doi Number: 10.1016/s0925-5273(00)00081-5
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.49-64
  • Keywords: fuzzy decision analysis, multi-criteria decision-making, investment analysis, flexible manufacturing systems, ROBOT SELECTION, JUSTIFICATION, FRAMEWORK, SETS, TECHNOLOGIES, FLEXIBILITY, AUTOMATION, APPRAISAL, SUPPORT
  • Galatasaray University Affiliated: Yes


In this paper, a fuzzy decision algorithm is proposed to select the most suitable advanced manufacturing system (AMS) alternative from a set of mutually exclusive alternatives. Both economic evaluation criterion and strategic criteria such as flexibility, quality improvement, which are not quantitative in nature, are considered for selection. The economic aspects of the AMS selection process are addressed using the fuzzy discounted cash Row analysis. The decision algorithm aggregates the experts' preference ratings for the economic and strategic criteria weights, and the suitability of AMS investment alternatives versus the selection criteria to calculate fuzzy suitability indices. The fuzzy indices are then used to rank the AMS investment alternatives. Triangular fuzzy numbers are used throughout the analysis to quantify the vagueness inherent in the financial estimates such as periodic cash flows, interest rate and inflation rates, experts' linguistic assessments for strategic justification criteria, and importance weight of each criterion. A comprehensive numerical example is provided to illustrate the results of the analysis. (C) 2001 Elsevier Science B.V. All rights reserved.