Evaluating R&D Projects as Investments by Using an Overall Ranking From Four New Fuzzy Similarity Measure-Based TOPSIS Variants

Author

Collan, Mikael ; Luukka, Pasi

Author_Institution

Sch. of Bus., Lappeenranta Univ. of Technol., Lappeenranta, Finland

Volume

22

Issue

3

fYear

2014

fDate

Jun-14

Firstpage

505

Lastpage

515

Abstract

Research and development (R&D) project ranking as investments is a well-known problem that is made difficult by incomplete and imprecise information about future project profitability. This paper shows how profitability results of R&D project evaluation with the fuzzy pay-off method can be ranked with four new variants of fuzzy TOPSIS each using a different fuzzy similarity measure. An overall project ranking that incorporates the four new variants´ rankings with three different ideal solutions totaling 12 subrankings is presented. The implementation of the created methods is illustrated with a numerical example.

Keywords

fuzzy set theory; investment; research and development; TOPSIS variants; evaluating R&D projects; fuzzy payoff method; investments; new fuzzy similarity measurement; overall ranking; profitability; research and development project ranking; Fuzzy pay-off method (FPOM); R&D project selection; fuzzy TOPSIS; fuzzy similarity measures;

fLanguage

English

Journal_Title

Fuzzy Systems, IEEE Transactions on

Publisher

ieee

ISSN

1063-6706

Type

jour

DOI

10.1109/TFUZZ.2013.2260758

Filename

6512571