Fuzzy multi-criteria evaluation of R&D projects and a fuzzy trinomial lattice approach for real options

A. Çagri Tolga, Cengiz Kahraman

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Project selection decisions could be thought within the strategic objectives and plans of the firm. So, strategic R&D project selection decision is very important in two ways. First, in many organizations, R&D budget represents huge investment. Second, R&D projects' organizational returns are multidimensional in nature and risky in terms of projected outcome. The risky side of the selection process is calculated by real options approach. New fuzzy trinomial lattice solution method is used in real options approach. Multidimensional side of the R&D project selection process is included in the model by multi-criteria method. Another consideration is the vagueness in the evaluation process. The fuzzy AHP, which takes monetary fuzzy real option value) and nonmonetary (capability, success probability, trends, etc.) criteria into account, is used to make this selection among alternative R&D projects.

Original languageEnglish
Title of host publicationProceedings of 2008 3rd International Conference on Intelligent System and Knowledge Engineering, ISKE 2008
Pages418-423
Number of pages6
DOIs
Publication statusPublished - 2008
EventProceedings of 2008 3rd International Conference on Intelligent System and Knowledge Engineering, ISKE 2008 - Xiamen, China
Duration: 17 Nov 200819 Nov 2008

Publication series

NameProceedings of 2008 3rd International Conference on Intelligent System and Knowledge Engineering, ISKE 2008

Conference

ConferenceProceedings of 2008 3rd International Conference on Intelligent System and Knowledge Engineering, ISKE 2008
Country/TerritoryChina
CityXiamen
Period17/11/0819/11/08

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