Investment project evaluation by a decision making methodology based on type-2 fuzzy sets

Although investment projects supported by the state are extremely important in terms of national policy the projects to be transferred from the common public funds brings with it many problems. Highly transparent and comprehensive evaluation model are required to transfer the public resources to the right investment projects. It is necessary to consider many criteria for the evaluation of an investment project. These criteria are generally subjective and extremely difficult to express in numbers. However, using the fuzzy sets provide huge facilities to decision makers in project evaluation process with linguistic variables and measurement challenges. In this study, a new evaluation model for investment projects have been proposed for development agencies operating in Turkey. To address ambiguities and relativities in real world scenarios more conveniently, type-2 fuzzy sets and crisp sets have been simultaneously used. The proposed model for the investment project evaluation problem composed of type-2 fuzzy AHP and type-2 fuzzy TOPSIS methods. The proposed fuzzy MCDM method consists of three phases: (1) identify the criteria to be used in the model, (2) type-2 fuzzy AHP computations, (3) evaluation of investment projects with type-2 fuzzy TOPSIS and determination of the final rank. To perceive proposed model better, an application with real case data have been performed in Middle Black Sea Development Agency in Turkey. As a consequence of this application, it has been observed that the proposed model have proved effective in evaluation of alternatives in multi-criteria group decision making problems in a broader perspective and flexible fashion. (C) 2014 Elsevier B.V. All rights reserved.