On the Role of Fuzzy Sets and Systems in Managerial Decision Making
Published: 2014
Author(s) Name: C. R. Bector, S. K. Bhatt, S. S. Appadoo |
Author(s) Affiliation: Asper School of Business, University of Manitoba, Winnipeg, Canada.
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Abstract
The present paper discusses the history and the logic behind the conception and development of fuzzy sets and systems and the fuzzy logic therein, and how its suitability was recognized in modeling the decision making problems in management science, finance, marketing, and supply chain management, among others. Lately, fuzzy models are being used in multi-attribute decision making. Problems such as brand choice, consumer behavior, head hunting in human resource management, in which human preferences are involved and have to be evaluated quantifiably to arrive at a tangible decision, fall in this category. The paper tries to explain the intricate fuzzy logic in a manager friendly language and how it is applied in the decision making process where linguistic ambiguity or imprecision is involved. We present the application of fuzzy logic and possibility theory in modeling and the solutions of business problems in various fields such as Finance, marketing, supply chain among others.
Keywords: Fuzzy Number, Fuzzy Mathematics and Fuzzy Logic, Possibility Theory, ?-Cuts, Fuzzy Equations, Fuzzy Decisions, Possibilistic Mean and Variance
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