Title: Project selection using fuzzy linear programming model

Authors: Iman Maleki; Hashem Omrani; Reza Ghodsi; Abdollah Khoei

Addresses: Department of Industrial Engineering, Urmia University of Technology, P.O. Box: 57155-419, Band Road, Urmia, West Azerbaijan, Iran ' Department of Industrial Engineering, Urmia University of Technology, P.O. Box: 57155-419, Band Road, Urmia, West Azerbaijan, Iran ' Department of Industrial Engineering, Faculty of Engineering, University of Tehran, P.O. Box: 14395-515, Tehran, Iran ' Department of Electrical Engineering, Faculty of Engineering, Urmia University, P.O. Box: 57561-51818, Nazlou Road, Urmia, West Azerbaijan, Iran

Abstract: In this paper, a fuzzy linear programming model is presented for selecting the proper project and obtaining budget at the end of tth period. The real world uncertainties are considered through fuzzy concepts and a linear programming model is proposed to model the uncertainty in data. The tax and depreciation are incorporated into the proposed model and the investments are considered as investment projects. The model allows considering different rate of return for each project. Finally, to illustrate the application of the proposed model, a numerical example is solved.

Keywords: fuzzy linear programming; project selection; internal rate of return; uncertainties; tax; depreciation; investment projects; modelling.

DOI: 10.1504/IJOR.2014.058949

International Journal of Operational Research, 2014 Vol.19 No.2, pp.211 - 233

Received: 02 May 2012
Accepted: 21 Aug 2012
Published online: 17 Jun 2014 *

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