scholarly journals Integrating Fuzzy AHP and Fuzzy ARAS for evaluating financial performance

2014 ◽  
Vol 32 (2) ◽  
pp. 163 ◽  
Author(s):  
Abdolhamid Safaei Ghadikolaei ◽  
Saber Khalili Esbouei
Keyword(s):  
Performance Evaluation ◽  
Financial Performance ◽  
Manufacturing Industry ◽  
Stock Exchange ◽  
Fuzzy Ahp ◽  
Hybrid Approach ◽  
Analytic Hierarchy ◽  
Fuzzy Environment ◽  
Parts Manufacturing ◽  
Hierarchy Process

Multi Criteria Decision Making (MCDM) is an advanced field of Operation Research; recently MCDM methods are efficient and common tools for performance evaluation in many areas such as finance and economy. The aim of this study is to show one of applications of mathematics in real word. This study with considering value based measures and accounting based measures simultaneously, provided a hybrid approach of MCDM methods in fuzzy environment for financial performance evaluation of automotive and parts manufacturing industry of Tehran stock exchange (TSE).for this purpose Fuzzy analytic hierarchy process (FAHP) is applied to determine the relative important of each criterion, then The companies are ranked according their financial performance by using fuzzy additive ratio assessment (Fuzzy ARAS) method. The finding of this study showed effective of this approach in evaluating financial performance.

scholarly journals An integrated assessment of companies based on value based measures in fuzzy environment

2015 ◽  
Vol 34 (2) ◽  
pp. 87-98 ◽  
Author(s):  
Seyed Reza Seyed Javadin ◽  
Saber Khalili Esbouei ◽  
Neda Rajabani
Keyword(s):  
Performance Evaluation ◽  
Financial Performance ◽  
Stock Exchange ◽  
Hybrid Approach ◽  
Current Approach ◽  
Analytic Hierarchy ◽  
Management Actions ◽  
Fuzzy Environment ◽  
Automotive Parts ◽  
Financial Performance Measures

In today’s world economy, firms focused on the maximization of shareholder value need to ensure that all activities yield positive net present values. Value based financial performance measures have been developed in an attempt to guide management actions towards achieving this objective. In this study, a hybrid approach is proposed for value based financial performance evaluation of automotive parts manufacturer companies of Tehran stock exchange (TSE). For this purpose, in this study based on eight value based measures an integrated fuzzy multi criteria decision making approach is presented for value based financial performance evaluation of companies. In current approach Fuzzy Analytic Hierarchy Process (FAHP) is applied to determine the weights of the criteria. Then the companies are ranked by Fuzzy Complex Proportional Assessment (Fuzzy COPRAS), simultaneously. The results represented the importance of each value based measures in financial evaluation of fourteen Iranian companies and ranking companies by applying the proposed approach.

scholarly journals APPLYING FUZZY MCDM FOR FINANCIAL PERFORMANCE EVALUATION OF IRANIAN COMPANIES

2014 ◽  
Vol 20 (2) ◽  
pp. 274-291 ◽  
Author(s):  
Abdolhamid Safaei Ghadikolaei ◽  
Saber Khalili Esbouei ◽  
Jurgita Antucheviciene
Keyword(s):  
Performance Evaluation ◽  
Financial Performance ◽  
Stock Exchange ◽  
Evaluation Model ◽  
Economic Value ◽  
Hybrid Approach ◽  
Evaluation Process ◽  
Business Environment ◽  
Analytic Hierarchy ◽  
Company Value

Financial performance evaluation is very important in a highly competitive business environment. Accordingly, an accurate and appropriate performance evaluation is critical. Financial performance indicators reflect the competitiveness of a company and they must be carefully identified in the evaluation process. Generally, accounting measures are used for performance evaluation. However, these measures are not sufficient for performance evaluation in the today’s competitive economy. Therefore, value based measures have recently been introduced to express the company value. In this study, a hybrid approach is proposed for financial performance evaluation of automotive companies of Tehran stock exchange (TSE). For this purpose, a hierarchical financial performance evaluation model is structured based on the accounting measures and economic value measures. In this approach Fuzzy Analytic Hierarchy Process (FAHP) is applied to determine weights of criteria. Then the companies are ranked by using Fuzzy VIKOR (VlseKriterijumska Optimizacija I Kompromisno Resenje (in Serbian), Fuzzy Additive Ratio Assessment (ARAS-F) and Fuzzy Complex Proportional Assessment (Fuzzy COPRAS), simultaneously. Also results of three outranking methods are combined by using the mean ranks. The results represented the highest importance of economic value measures than accounting measures in financial performance evaluation of companies. Six companies were ranked applying the proposed approach.

scholarly journals PENERAPAN METODE FUZZY AHP DALAM PENENTUAN SEKTOR YANG BERPENGARUH TERHADAP PEREKONOMIAN PROVINSI BALI

2016 ◽  
Vol 5 (2) ◽  
pp. 59
Author(s):  
TJOKORDA GDE AGUNG FRISKA ADNYANA ◽  
G. K. GANDHIADI ◽  
DESAK PUTU EKA NILAKUSMAWATI
Keyword(s):  
Manufacturing Industry ◽  
Fuzzy Ahp ◽  
Weighted Average ◽  
Pairwise Comparison ◽  
Primary Group ◽  
Tertiary Sector ◽  
Analytic Hierarchy ◽  
Consistency Ratio ◽  
Analytic Hierarchy Process Method ◽  
Hierarchy Process

The aim of this research is to apply Fuzzy Analytic Hierarchy Process method to determine the dominant sectors of economy Bali Province. This research used survey data from respondents who understand about economy of Bali Province and Gross Regional Domestic Product (GRDP). The research variables consist of criteria and sub-criteria. The criteria consist of primary sector, secondary, and tertiary, while the sub-criteria consist of 9 sectors of the GRDP. Data processing is done by calculating the weighted average and arrange them into pairwise comparison matrices. Furthermore, the consistency ratio is checked. If consistency ratio less than 0.100 (), the elements of matrices is changed into triangular fuzzy scale and processed with synthetic extent to get the priority. Based on the result of research, the economy of Bali are dominated by tertiary sector in sector group, agriculture and forestry in sub-primary group, manufacturing industry in sub-secondary group, and trade, hotel and restaurant in sub-tertiary group.

scholarly journals Multicriteria optimization in a fuzzy environment: The fuzzy analytic hierarchy process

2010 ◽  
Vol 20 (1) ◽  
pp. 71-85 ◽  
Author(s):  
Milanka Gardasevic-Filipovic ◽  
Dragan Saletic
Keyword(s):  
Analytic Hierarchy Process ◽  
Optimization Problems ◽  
Fuzzy Ahp ◽  
User Preferences ◽  
Analytic Hierarchy ◽  
Weighted Sum Method ◽  
Fuzzy Environment ◽  
Previously Treated ◽  
Judgment Matrix ◽  
Hierarchy Process

In the paper the fuzzy extension of the Analytic Hierarchy Process (AHP) based on fuzzy numbers, and its application in solving a practical problem, are considered. The paper advocates the use of contradictory test to check the fuzzy user preferences during fuzzy AHP decision-making process. We also propose consistency check and deriving priorities from inconsistent fuzzy judgment matrices to be included in the process, in order to check if the fuzzy approach can be applied in the AHP for the problem considered. An aggregation of local priorities obtained at different levels into composite global priorities for the alternatives based on weighted-sum method is also discussed. The contradictory fuzzy judgment matrix is analyzed. Our theoretical consideration has been verified by an application of commercially available Super Decisions program (developed for solving multi-criteria optimization problems using AHP approach) on the problem previously treated in the literature. The obtained results are compared with those from the literature. The conclusions are given and the possibilities for further work in the field are pointed out.

scholarly journals Selection of Plant Location using Consistent FAHP and Goal Programming Technique

2020 ◽  
Vol 8 (4S5) ◽  
pp. 164-169
Keyword(s):  
Goal Programming ◽  
Manufacturing Industry ◽  
Fuzzy Ahp ◽  
Preference Relation ◽  
Time Data ◽  
Programming Technique ◽  
Fuzzy Environment ◽  
Decision Making Problem ◽  
The Cost ◽  
Hierarchy Process

Hierarchy Process (AHP) is one of the effectively used tools for solving Multi Criteria decision making problem. In AHP the decision maker’s ambiguity and uncertainty cannot be handled. To solve this, AHP is extended in Fuzzy environment. In this paper a new method of Fuzzy AHP based on multiplicative consistent fuzzy preference relation is introduced. In this method, an iterative algorithm is given to construct comparison matrices from n (n-1)/2 preferences .From these comparison matrices the weight vectors are evaluated by goal programming technique. The validity of this method is checked by applying this it to a solved problem in the literature and it is found that this method yields the same result. Location of a manufacturing plant has a significant impact on the performance of the company as it minimizes the cost and maximizes the use of resource. A manufacturing industry wants to select a location for its new plant. The method proposed in this paper is applied to select the best location out of several alternatives with the real time data.

scholarly journals Decision Modeling for Manufacturing Sustainability with Fuzzy Analytic Hierarchy Process

2017 ◽  
Vol 20 (1) ◽  
pp. 25-41 ◽  
Author(s):  
Lanndon A. Ocampo
Keyword(s):  
Decision Making ◽  
Analytic Hierarchy Process ◽  
Fuzzy Ahp ◽  
Hybrid Approach ◽  
Multiple Criteria Decision Making ◽  
Fuzzy Analytic Hierarchy Process ◽  
Manufacturing Strategy ◽  
Analytic Hierarchy ◽  
Priority List ◽  
Hierarchy Process

This article intends to integrate sustainability and the classical manufacturing strategy (MS) into a coherent hierarchical decision-making framework that identifies the content of a sustainable MS using fuzzy analytic hierarchy process (fuzzy AHP). Instead of using the traditional fundamental scale of the AHP, linguistic variables with equivalent triangular fuzzy numbers (TFNs) are used to elucidate judgement of elements in pairwise comparisons. AHP, as a widely adopted tool in multiple criteria decision making (MCDM) problems, effectively handles the subjectivity and comprehensiveness of decision-making complexity that is structured hierarchically. Domain experts in MS and sustainability were asked to elicit judgement in AHP pairwise comparison approach. Results show the content strategy of the nine decision categories in manufacturing that addresses sustainability and competitiveness. A priority list of decisions is also presented which may guide decision-makers in resource allocation, medium- and long-range planning, and in formulating strategic initiatives. The main contribution of this article is the formulation of a sustainable MS from a hybrid approach that captures uncertainty and subjectivity in decision-making.

A Hybrid Approach using the Bees Algorithm and Fuzzy-AHP for Supplier Selection

2016 ◽  
pp. 171-194 ◽  
Author(s):  
Baris Yuce ◽  
Ernesto Mastrocinque
Keyword(s):  
Analytic Hierarchy Process ◽  
Supplier Selection ◽  
Fuzzy Ahp ◽  
Hybrid Approach ◽  
Fuzzy Analytic Hierarchy Process ◽  
Bees Algorithm ◽  
Type Model ◽  
Analytic Hierarchy ◽  
Optimum Order ◽  
Hierarchy Process

In this chapter, a new hybrid approach combining the Fuzzy Analytic Hierarchy Process (AHP) and the Bees Algorithm is proposed in order to solve the supplier selection problem. The Fuzzy Analytic Hierarchy Process is used to determine the importance weight of each criterion and sub-criterion considered for the supplier selection, which are quality, cost, service level, supplier profile and risk. These weights are utilized in a mathematical model to determine the optimum order level of each row material from each supplier. The model considers capacity, demand, on-time delivery, quality and bill of materials. To determine the optimum order levels, the Bees Algorithm is applied to optimize this NP-hard type model under the constraints. The results showed that the Bees Algorithm performed better than Genetic Algorithm during the optimization stage.

scholarly journals Selection of Marine Security Policy using Fuzzy-AHP TOPSIS Hybrid Approach

2019 ◽  
Vol 2 (1) ◽  
pp. 19
Author(s):  
Hozairi Hozairi ◽  
Buhari Buhari ◽  
Heru Lumaksono ◽  
Marcus Tukan
Keyword(s):  
Set Theory ◽  
Security Policy ◽  
Fuzzy Ahp ◽  
Hybrid Approach ◽  
Maritime Security ◽  
Comparison Process ◽  
Analytic Hierarchy ◽  
Order Preference ◽  
Hierarchy Process ◽  
Selection Of

The research was focused on the integration of Fuzzy set theory with Analytic Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) to choose the optimum maritime security policy to achieve Indonesia recognition as the world's maritime axis. The method used is AHP with fuzzy based enhancement. Here, the weight of each criterion is calculated to overcome the criticism of the scale of unbalanced rating, uncertainty, and inaccuracy in the pairwise of comparison process. The best recommendation for Indonesian maritime policies is multi task single agency which is greatly infuenced by several factors such as technology, regulations, infrastructure, economic, politic, and socio-culture.  The finding shows that the hybrid approach is able to produce the best recommendation for Indonesian maritime security policy.

scholarly journals A HYBRID FINANCIAL PERFORMANCE EVALUATION MODEL FOR WEALTH MANAGEMENT BANKS FOLLOWING THE GLOBAL FINANCIAL CRISIS

2015 ◽  
Vol 22 (1) ◽  
pp. 21-46 ◽  
Author(s):  
Shun-Chiao CHANG ◽  
Pei-Hsuan TSAI
Keyword(s):  
Performance Evaluation ◽  
Financial Crisis ◽  
Financial Performance ◽  
Global Financial Crisis ◽  
Evaluation Model ◽  
Risk Control ◽  
Hybrid Approach ◽  
Analytic Hierarchy ◽  
Wealth Management ◽  
The Global Financial Crisis

The study constructs a hybrid approach to financial performance evaluation for wealth management (WM) banks affected by the global financial crisis from the middle of 2007 into 2008 utilizing an analytic hierarchy process (AHP) and the VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR). Five aspects of multi-criteria group decision making including service, performance, professionalism, risk control, and consumers’ confidence (SPPRC) reveal that consumers’ confidence, risk control and service are the top three key factors for Taiwan’s seven main WM banks in evaluating the performance of banking managers.

On Moderate Fuzzy Analytic Hierarchy Process Pairwise Comparison Model With Subcriteria

2016 ◽  
Vol 2 (3) ◽  
pp. 54
Author(s):  
G. Marimuthu ◽  
G. Ramesh
Keyword(s):  
Decision Making ◽  
Analytic Hierarchy Process ◽  
Fuzzy Ahp ◽  
Pairwise Comparison ◽  
Decision Models ◽  
Fuzzy Analytic Hierarchy Process ◽  
Analysis Method ◽  
Analytic Hierarchy ◽  
Comparison Model ◽  
Hierarchy Process

Decisions usually involve the getting the best solution, selecting the suitable experiments, most appropriate judgments, taking the quality results etc., using some techniques.  Every decision making can be considered as the choice from the set of alternatives based on a set of criteria.  The fuzzy analytic hierarchy process is a multi-criteria decision making and is dealing with decision making problems through pairwise comparisons mode [10].  The weight vectors from this comparison model are obtained by using extent analysis method.  This paper concern with an alternate method of finding the weight vectors from the original fuzzy AHP decision model (moderate fuzzy AHP model), that has the same rank as obtained in original fuzzy AHP and ideal fuzzy AHP decision models.

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