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A fuzzy evaluation model of manufacturing machinery in terms of sustainable business

Author

Listed:
  • Simona Hašková

    (Institute of Technology and Business in České Budějovice, Czech Republic)

  • Marek Vochozka

    (Institute of Technology and Business in České Budějovice, Czech Republic)

  • Jiří Kučera

    (Institute of Technology and Business in České Budějovice, Czech Republic)

Abstract

The inclusion of sustainability criteria in the investment decision processes requires application of tools that consider the vague nature of sustainable characteristics. Fuzzy approach can process the vagueness of sustainability measures. The aim of the paper is to develop a suitable model of the fuzzy assessment of investment alternatives measured by Sustainability Utility Index. Its scheme is described methodologically as a three-stage system of multi-criteria ex-ante evaluation. An algorithmic conception of the system is performed at its third stage by a "fuzzy processor". The fuzzy model is applied to the task of the optimal type of building machinery selection in view of the cost and sustainable criteria. The results enable the manager to optimize his/her decision, who aims to minimize the investment and operation costs of the building machinery. Compared to the fuzzy approach based on Mandani's system, our model avoids several complications associated with the semantics of fuzzy implications in various fuzzy logics, it is more user friendly and easily algorithmized. This model is thus suitable to apply not only in corporate sphere but also in areas of ecology, sociology, economics. The limits of the fuzzy system are twofold - on the general level the fuzzy systems lack the ability to learn and memorize; determining or tuning a suitable membership function and fuzzy rules is not always clear. The challenge is first to test the model in the corporate sphere and second to acquaint potential users with this computationally undemanding fuzzy procedure.

Suggested Citation

  • Simona Hašková & Marek Vochozka & Jiří Kučera, 2023. "A fuzzy evaluation model of manufacturing machinery in terms of sustainable business," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(4), pages 71-88, June.
    • Handle: RePEc:ssi:jouesi:v:10:y:2023:i:4:p:71-88
    DOI: 10.9770/jesi.2023.10.4(5)
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    References listed on IDEAS

    as
    1. Simona Hašková & Petr Fiala, 2019. "A fuzzy approach for the estimation of foreign investment risk based on values of rating indices," Risk Management, Palgrave Macmillan, vol. 21(3), pages 183-199, September.
    2. Miroslav Kelemen & Beata Gavurova & Volodymyr Polishchuk, 2022. "A Complex Hybrid Model for Evaluating Projects to Improve the Sustainability and Health of Regions and Cities," IJERPH, MDPI, vol. 19(13), pages 1-26, July.
    3. Simona Hašková & Petr Fiala, 2019. "Correction to: A fuzzy approach for the estimation of foreign investment risk based on values of rating indices," Risk Management, Palgrave Macmillan, vol. 21(3), pages 200-200, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    multi-criteria decision-making; corporate production; ex-ante evaluation; fuzzy processor; fuzzification table; sustainability utility index;
    All these keywords.

    JEL classification:

    • D25 - Microeconomics - - Production and Organizations - - - Intertemporal Firm Choice: Investment, Capacity, and Financing
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies

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