Fuzzy multi-attribute evaluation of investments

Most companies have a large number of projects that they would like to do for various reasons. However, usually there is never enough time and money available to complete all of them. Selecting a portfolio from available project proposals is crucial for the success of each company. This paper proposes a practical framework for modelling projects portfolio selection problem with fuzzy parameters resulting from uncertainty associated with decision makers' judgment. A fuzzy multi-attribute decision-making approach is adopted. A two-step evaluation model that combines fuzzy AHP (Analytic Hierarchy Process) and fuzzy TOPSIS (Technique for Order Preference by Similarity Ideal Solution) methods is used to rank potential projects. The proposed approach is illustrated by an empirical study of a real case from steel industry involving five criteria and ten projects.