Multi crteria decision making and its applications : a literature review

This paper presents current techniques used in Multi Criteria Decision Making (MCDM) and their applications. Two basic approaches for MCDM, namely Artificial Intelligence MCDM (AIMCDM) and Classical MCDM (CMCDM) are discussed and investigated. Recent articles from international journals related to MCDM are collected and analyzed to find which approach is more common than the other in MCDM. Also, which area these techniques are applied to. Those articles are appearing in journals for the year 2008 only. This paper provides evidence that currently, both AIMCDM and CMCDM are equally common in MCDM

Genetic algorithms

Genetic algorithms are mathematical, highly parallel, adaptive search procedures (i.e., problem solving methods) based loosely on the processes of natural genetics and Darwinian survival of the fittest. Basic genetic algorithms concepts are introduced, genetic algorithm applications are introduced, and results are presented from a project to develop a software tool that will enable the widespread use of genetic algorithm technology

Decision support model for the selection of asphalt wearing courses in highly trafficked roads

The suitable choice of the materials forming the wearing course of highly trafficked roads is a delicate task because of their direct interaction with vehicles. Furthermore, modern roads must be planned according to sustainable development goals, which is complex because some of these might be in conflict. Under this premise, this paper develops a multi-criteria decision support model based on the analytic hierarchy process and the technique for order of preference by similarity to ideal solution to facilitate the selection of wearing courses in European countries. Variables were modelled using either fuzzy logic or Monte Carlo methods, depending on their nature. The views of a panel of experts on the problem were collected and processed using the generalized reduced gradient algorithm and a distance-based aggregation approach. The results showed a clear preponderance by stone mastic asphalt over the remaining alternatives in different scenarios evaluated through sensitivity analysis. The research leading to these results was framed in the European FP7 Project DURABROADS (No. 605404).The research leading to these results has received funding from the European Union Seventh Framework Programme (FP7/2007–2013) under Grant Agreement No. 605404

Soft computing techniques applied to finance

Soft computing is progressively gaining presence in the financial world. The number of real and potential applications is very large and, accordingly, so is the presence of applied research papers in the literature. The aim of this paper is both to present relevant application areas, and to serve as an introduction to the subject. This paper provides arguments that justify the growing interest in these techniques among the financial community and introduces domains of application such as stock and currency market prediction, trading, portfolio management, credit scoring or financial distress prediction areas.Publicad

Mapping customer needs to engineering characteristics: an aerospace perspective for conceptual design

Designing complex engineering systems, such as an aircraft or an aero-engine, is immensely challenging. Formal Systems Engineering (SE) practices are widely used in the aerospace industry throughout the overall design process to minimise the overall design effort, corrective re-work, and ultimately overall development and manufacturing costs. Incorporating the needs and requirements from customers and other stakeholders into the conceptual and early design process is vital for the success and viability of any development programme. This paper presents a formal methodology, the Value-Driven Design (VDD) methodology that has been developed for collaborative and iterative use in the Extended Enterprise (EE) within the aerospace industry, and that has been applied using the Concept Design Analysis (CODA) method to map captured Customer Needs (CNs) into Engineering Characteristics (ECs) and to model an overall ‘design merit’ metric to be used in design assessments, sensitivity analyses, and engineering design optimisation studies. Two different case studies with increasing complexity are presented to elucidate the application areas of the CODA method in the context of the VDD methodology for the EE within the aerospace secto

Fuzzy Logic and Its Uses in Finance: A Systematic Review Exploring Its Potential to Deal with Banking Crises

The major success of fuzzy logic in the field of remote control opened the door to its application in many other fields, including finance. However, there has not been an updated and comprehensive literature review on the uses of fuzzy logic in the financial field. For that reason, this study attempts to critically examine fuzzy logic as an effective, useful method to be applied to financial research and, particularly, to the management of banking crises. The data sources were Web of Science and Scopus, followed by an assessment of the records according to pre-established criteria and an arrangement of the information in two main axes: financial markets and corporate finance. A major finding of this analysis is that fuzzy logic has not yet been used to address banking crises or as an alternative to ensure the resolvability of banks while minimizing the impact on the real economy. Therefore, we consider this article relevant for supervisory and regulatory bodies, as well as for banks and academic researchers, since it opens the door to several new research axes on banking crisis analyses using artificial intelligence techniques

A regional approach for optimization of the municipal waste management system using fuzzy sets

In the context of complexity in permanent growing of the problems and standards, the area of municipal waste management is in an accelerated evolution process. As the number of municipal waste management alternatives increase, the selection of the best waste management system- that is to decide on the combination of collection, processing and disposal techniques that will best serve the present and future needs of a community- become a more difficult task for local authorities. Consequently, mathematical modelling techniques have been introduced to waste management in order to help the decision makers from this area. This paper presents a fuzzy optimization model for the development of an integrated waste management system at the regional level. Based on the options investigated in the model the end-users will be able to select and develop investments projects at local and county level in the aim of achieving the targets of the region.municipal waste, fuzzy optimization model, regional approach

A framework for the selection of the right nuclear power plant

Civil nuclear reactors are used for the production of electrical energy. In the nuclear industry vendors propose several nuclear reactor designs with a size from 35–45 MWe up to 1600–1700 MWe. The choice of the right design is a multidimensional problem since a utility has to include not only financial factors as levelised cost of electricity (LCOE) and internal rate of return (IRR), but also the so called “external factors” like the required spinning reserve, the impact on local industry and the social acceptability. Therefore it is necessary to balance advantages and disadvantages of each design during the entire life cycle of the plant, usually 40–60 years. In the scientific literature there are several techniques for solving this multidimensional problem. Unfortunately it does not seem possible to apply these methodologies as they are, since the problem is too complex and it is difficult to provide consistent and trustworthy expert judgments. This paper fills the gap, proposing a two-step framework to choosing the best nuclear reactor at the pre-feasibility study phase. The paper shows in detail how to use the methodology, comparing the choice of a small-medium reactor (SMR) with a large reactor (LR), characterised, according to the International Atomic Energy Agency (2006), by an electrical output respectively lower and higher than 700 MWe