Review of Fuzzy Numbers and its Application in Capital Budgeting

A fuzzy number is an extension of a regular number in the sense that it does not refer to one single value but rather to a connected set of possible values. Whereas, capital budgeting is the planning process used to determine whether an organisation’s long term investments such as new machinery, rep...

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Main Author:	Abdul Malek, Yaakob
Format:	Thesis
Language:	eng
Published:	2011
Subjects:	QA Mathematics
Online Access:	https://etd.uum.edu.my/3413/1/ABDUL_MALEK_YAAKOB.pdf
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id	my-uum-etd.3413
record_format	uketd_dc
spelling	my-uum-etd.34132022-04-10T23:09:16Z Review of Fuzzy Numbers and its Application in Capital Budgeting 2011-05 Abdul Malek, Yaakob Maan, Normah College of Arts and Sciences (CAS) Faculty of Science Universiti Teknologi Malaysia QA Mathematics A fuzzy number is an extension of a regular number in the sense that it does not refer to one single value but rather to a connected set of possible values. Whereas, capital budgeting is the planning process used to determine whether an organisation’s long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. The purpose of this study is to review the concept of one, two and ndimensional fuzzy numbers and investigate the application of fuzzy numbers in financial field specifically in capital budgeting problem. There are five capital budgeting techniques usually used in practices, such as revenue per one dollar, payback period, net present value(NPV), net future value(NFV), and the modified of internal rate of return(MIRR) methods. In this research both, classical and fuzzy approach are used in order to evaluate the project as mentioned above. The research will also focus on the application of special case of trapezoidal fuzzy numbers, triangular fuzzy number. At the end of this research the comparison of classical and fuzzy methods are discussed according to five capital budgeting methods. The result of this study provides the alternative way in financial field to evaluate the profitable project to invest. 2011-05 Thesis https://etd.uum.edu.my/3413/ https://etd.uum.edu.my/3413/1/ABDUL_MALEK_YAAKOB.pdf text eng public masters masters Universiti Teknologi Malaysia L. A. Zadeh, Fuzzy Set. Information and Control, 8: 97-110, April 1965. S.Nahmias, Fuzzy Variable. Fuzzy Set and System, 1:97-110, Feb 1977. D.Dubois and H. Prade, Operation of fuzzy numbers. Int. Jour. Syst. Sci., 9: 613—626, Feb 1978. Ch. -Ch. Chou, The canonical representation of multiplication operation on triangular fuzzy numbers. Computers and Mathematics with Applications,45:16601-1610, May-June 2003. R. Goetschel and W. Voxman, Elementary fuzzy calculus. Fuzzy Sets and System, 18: 31-43, March 1986. C. W. B. Zhang. On the representation of n-dimensional fuzzy numbers and their informational content. Fuzzy Sets and System, 128:227-235, March 2002. A. M. Yaakob, A Fuzzy Desicion Making Model For Stock Selection: A Case Study of Syariah Compliant Securities Listed in Main Board on Bursa Malaysia. Technical Report, Universiti Teknologi MARA , Nov 2008. M. B. Anoop, K. B. Rao,T. V. S. R. A. Rao, Application of fuzzy sets for estimating service life of reinforced concrete structural members in corrosive environments. Engineering Structures, 24: 1229-1242, September 2002. Anile,AM, Deodato,S & Privitera,G, Implementing Fuzzy Arithmetic. Fuzzy Sets and Systems, 72: 239-250, 2003. Kalmykov, S.A., Shokin,Y.I. & Yuldashev,Z.H. Methods of Interval Analysis. Russian : Nauka & Novosibirskno,1986. Buckley,J.J. The fuzzy mathematics of finance. Fuzzy Sets and Systems, 21: 257-273, 1987. I. Giannoccaro, P. Pontrandolfo, B. Scozzi, A fuzzy echelon approach for inventory management in supply chains. European Journal of Operational Research, 149: 185-196, August 2003 A. Kaufmann and M. M. Gupta, Introduction To Fuzzy Arithmetic, Theory and Applications, New York : Van Nostrand Reinhold Company,1985. M. M. Lee, Two Dimentional Fuzzy Numbers in Multi Variable System. Technical Report, Universiti Teknologi Malaysia, Nov. 2007. N. Maan, Mathematical Modeling of Mass Transfer in a Multi Stage Rotating Disk Contactor. PhD Thesis , Universiti Teknologi Malaysia, June. 2005. D. Kuchta, Fuzzy Capital Budgeting. Fuzzy Set and System, 111:367-385, March 2000.
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng
advisor	Maan, Normah
topic	QA Mathematics
spellingShingle	QA Mathematics Abdul Malek, Yaakob Review of Fuzzy Numbers and its Application in Capital Budgeting
description	A fuzzy number is an extension of a regular number in the sense that it does not refer to one single value but rather to a connected set of possible values. Whereas, capital budgeting is the planning process used to determine whether an organisation’s long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects are worth pursuing. The purpose of this study is to review the concept of one, two and ndimensional fuzzy numbers and investigate the application of fuzzy numbers in financial field specifically in capital budgeting problem. There are five capital budgeting techniques usually used in practices, such as revenue per one dollar, payback period, net present value(NPV), net future value(NFV), and the modified of internal rate of return(MIRR) methods. In this research both, classical and fuzzy approach are used in order to evaluate the project as mentioned above. The research will also focus on the application of special case of trapezoidal fuzzy numbers, triangular fuzzy number. At the end of this research the comparison of classical and fuzzy methods are discussed according to five capital budgeting methods. The result of this study provides the alternative way in financial field to evaluate the profitable project to invest.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Abdul Malek, Yaakob
author_facet	Abdul Malek, Yaakob
author_sort	Abdul Malek, Yaakob
title	Review of Fuzzy Numbers and its Application in Capital Budgeting
title_short	Review of Fuzzy Numbers and its Application in Capital Budgeting
title_full	Review of Fuzzy Numbers and its Application in Capital Budgeting
title_fullStr	Review of Fuzzy Numbers and its Application in Capital Budgeting
title_full_unstemmed	Review of Fuzzy Numbers and its Application in Capital Budgeting
title_sort	review of fuzzy numbers and its application in capital budgeting
granting_institution	Universiti Teknologi Malaysia
granting_department	College of Arts and Sciences (CAS)
publishDate	2011
url	https://etd.uum.edu.my/3413/1/ABDUL_MALEK_YAAKOB.pdf
_version_	1747827567117729792

Review of Fuzzy Numbers and its Application in Capital Budgeting

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