Selecting the Most Economic Project under Uncertainty Using Bootstrap Technique and Fuzzy Simulation

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Department of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

Abstract

This article, by leaving pre-determined membership function of a fuzzy set which is a basic assumption for such subject, will try to propose a hybrid technique to select the most economic project among alternative projects in fuzziness interest rates condition. In this way, net present worth (NPW) would be the economic indicator. This article tries to challenge the assumption of large sample sizes availability for membership function determination and shows that some other techniques may have less accuracy. To give a robust solution, bootstrapping and fuzzy simulation is suggested and a numerical example is given and analyzed.
Interdisciplinary Journal of Management Studies
Volume 5, Issue 1 - Serial Number 862733
Iranian Journal of Management Studies
January 2012
Pages 9-24

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