A Review on Energy Consumption Optimization Techniques in IoT Based Smart Building Environments

In recent years, due to the unnecessary wastage of electrical energy in residential buildings, the requirement of energy optimization and user comfort has gained vital importance. In the literature, various techniques have been proposed addressing the energy optimization problem. The goal of each technique was to maintain a balance between user comfort and energy requirements such that the user can achieve the desired comfort level with the minimum amount of energy consumption. Researchers have addressed the issue with the help of different optimization algorithms and variations in the parameters to reduce energy consumption. To the best of our knowledge, this problem is not solved yet due to its challenging nature. The gap in the literature is due to the advancements in the technology and drawbacks of the optimization algorithms and the introduction of different new optimization algorithms. Further, many newly proposed optimization algorithms which have produced better accuracy on the benchmark instances but have not been applied yet for the optimization of energy consumption in smart homes. In this paper, we have carried out a detailed literature review of the techniques used for the optimization of energy consumption and scheduling in smart homes. The detailed discussion has been carried out on different factors contributing towards thermal comfort, visual comfort, and air quality comfort. We have also reviewed the fog and edge computing techniques used in smart homes

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

Fuzzy Transfer Pricing World: On the Analysis of Transfer Pricing with Fuzzy Logic Techniques

The arm’s length analysis of international transfer prices of multinational firms lacks sound methodological approach of the so-called function and risk analysis. In practice, such analyses are descriptive. Derived from Zadeh’s mathematical theory of fuzzy sets, this paper investigates a quantitative approach to identify the function and risk pattern of related parties of multinational companies. We illustrate our fuzzy logic approach with a simple case.

Demand Response Strategy Based on Reinforcement Learning and Fuzzy Reasoning for Home Energy Management

As energy demand continues to increase, demand response (DR) programs in the electricity distribution grid are gaining momentum and their adoption is set to grow gradually over the years ahead. Demand response schemes seek to incentivise consumers to use green energy and reduce their electricity usage during peak periods which helps support grid balancing of supply-demand and generate revenue by selling surplus of energy back to the grid. This paper proposes an effective energy management system for residential demand response using Reinforcement Learning (RL) and Fuzzy Reasoning (FR). RL is considered as a model-free control strategy which learns from the interaction with its environment by performing actions and evaluating the results. The proposed algorithm considers human preference by directly integrating user feedback into its control logic using fuzzy reasoning as reward functions. Q-learning, a RL strategy based on a reward mechanism, is used to make optimal decisions to schedule the operation of smart home appliances by shifting controllable appliances from peak periods, when electricity prices are high, to off-peak hours, when electricity prices are lower without affecting the customer’s preferences. The proposed approach works with a single agent to control 14 household appliances and uses a reduced number of state-action pairs and fuzzy logic for rewards functions to evaluate an action taken for a certain state. The simulation results show that the proposed appliances scheduling approach can smooth the power consumption profile and minimise the electricity cost while considering user’s preferences, user’s feedbacks on each action taken and his/her preference settings. A user-interface is developed in MATLAB/Simulink for the Home Energy Management System (HEMS) to demonstrate the proposed DR scheme. The simulation tool includes features such as smart appliances, electricity pricing signals, smart meters, solar photovoltaic generation, battery energy storage, electric vehicle and grid supply.Peer reviewe

Sustainability ranking of desalination plants using Mamdani Fuzzy Logic Inference Systems

As water desalination continues to expand globally, desalination plants are continually under pressure to meet the requirements of sustainable development. However, the majority of desalination sustainability research has focused on new desalination projects, with limited research on sustainability performance of existing desalination plants. This is particularly important while considering countries with limited resources for freshwater such as the United Arab Emirates (UAE) as it is heavily reliant on existing desalination infrastructure. In this regard, the current research deals with the sustainability analysis of desalination processes using a generic sustainability ranking framework based on Mamdani Fuzzy Logic Inference Systems. The fuzzy-based models were validated using data from two typical desalination plants in the UAE. The promising results obtained from the fuzzy ranking framework suggest this more in-depth sustainability analysis should be beneficial due to its flexibility and adaptability in meeting the requirements of desalination sustainability

Investment Risk Appraisal

Standard financial techniques neglect extreme situations and regards large market shifts as too unlikely to matter. This approach may account for what occurs most of the time in the market, but the picture it presents does not reflect the reality, as the major events happen in the rest of the time and investors are ‘surprised’ by ‘unexpected’ market movements. An alternative fuzzy approach permits fluctuations well beyond the probability type of uncertainty and allows one to make fewer assumptions about the data distribution and market behaviour. Fuzzifying the present value criteria, we suggest a measure of the risk associated with each investment opportunity and estimate the project’s robustness towards market uncertainty. The procedure is applied to thirty-five UK companies and a neural network solution to the fuzzy criterion is provided to facilitate the decision-making process. Finally, we discuss the grounds for classical asset pricing model revision and argue that the demand for relaxed assumptions appeals for another approach to modelling the market environment

The use of fuzzy logic and expert systems for rating and pricing firms: a new perspective on valuation.

This paper presents an expert system aimed at evaluating firms and business units. It makes use of fuzzy logic and integrates financial, strategic, managerial aspects, processing both quantitative and qualitative information. Twenty-nine value drivers are explicitly taken into account and combined together via “if-then” rules to produce an output. The output is a real number in the interval [0,1], representing the value-creation power of the firm. The system may be used for rating, ranking and pricing firms as well as for assessing the impact of managers’ decisions on value creation and as a tool of corporate governance.Firm valuation, fuzzy logic, expert system, acquisition, rating, pricing

The Theory of Fuzzy Logic and its Application to Real Estate Valuation

Fuzzy logic is based on the central idea that in fuzzy sets each element in the set can assume a value from 0 to 1, not just 0 or 1, as in classic set theory. Thus, qualitative characteristics and numerically scaled measures can exhibit gradations in the extent to which they belong to the relevant sets for evaluation. This degree of membership of each element is a measure of the element’s "belonging" to the set, and thus of the precision with which it explains the phenomenon being evaluated. Fuzzy sets can be combined to produce meaningful conclusions, and inferences can be made, given a specified fuzzy input function. The article demonstrates the application of fuzzy logic to an income-producing property, with a resulting fuzzy set output.

New Method for Real Option Valuation Using Fuzzy Numbers

Real option analysis offers interesting insights on the value of assets and on the profitability of investments, which has made real options a growing field of academic research and practical application. Real option valuation is, however, often found to be difficult to understand and to implement due to the quite complex mathematics involved. Recent advances in modeling and analysis methods have made real option valuation easier to understand and to implement. This paper presents a new method for real option valuation using fuzzy numbers that is based on findings from earlier real option valuation methods and from fuzzy real option valuation. The method is intuitive to understand and far less complicated than any previous real option valuation model to date.Real Options, Fuzzy Numbers, New Method

Resilience Assignment Framework using System Dynamics and Fuzzy Logic.

This paper is concerned with the development of a conceptual framework that measures the resilience of the transport network under climate change related events. However, the conceptual framework could be adapted and quantified to suit each disruption’s unique impacts. The proposed resilience framework evaluates the changes in transport network performance in multi-stage processes; pre, during and after the disruption. The framework will be of use to decision makers in understanding the dynamic nature of resilience under various events. Furthermore, it could be used as an evaluation tool to gauge transport network performance and highlight weaknesses in the network. In this paper, the system dynamics approach and fuzzy logic theory are integrated and employed to study three characteristics of network resilience. The proposed methodology has been selected to overcome two dominant problems in transport modelling, namely complexity and uncertainty. The system dynamics approach is intended to overcome the double counting effect of extreme events on various resilience characteristics because of its ability to model the feedback process and time delay. On the other hand, fuzzy logic is used to model the relationships among different variables that are difficult to express in numerical form such as redundancy and mobility