6533b828fe1ef96bd1287861

RESEARCH PRODUCT

Fuzzy Techniques for Improving Satisfaction in Economic Decisions

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The authors use fuzzy set theory to improve classical decision-making problems by incorporating the inherent vagueness in decision-makers’ preferences into the model. They specifically study two representative models: the p-median problem and the portfolio selection problem. The first one is a location problem, which on the one hand fits many real world management situations and on the other hand is suitable for a theoretical analysis of the techniques. The version of the portfolio selection problem presented here is a harder problem, which allows the authors to show the scope of their methods. Some numerical examples are provided to illustrate how fuzzy optimal solutions improve classical ones. Finally, the authors present some results about how fuzzy solutions depend on the membership functions of fuzzy parameters.