EVALUATION AND SELECTION OF PROJECTS USING HYBRID MCDM TECHNIQUE UNDER FUZZY ENVIRONMENT BASED ON FINANCIAL FACTORS

Selection of project among a set of possible investment alternatives is a tough task that the decision maker (DM) has to face. For evaluation and selection of these projects, a set of six factors, i.e. Net present value, Rate of return, Benefit cost analysis, Payback period, investment size and Time until breakeven are considered. The objective of this work is to demonstrate the methodology of evaluating and selecting the best project by using hybrid multi criteria decision making technique (MCDM), i.e., fuzzy analytical hierarchy process (Fuzzy AHP) and fuzzy technique for order preference by similarity to ideal solution (Fuzzy TOPSIS). The criteria weights are calculated by using Fuzzy AHP whereas the global weights of all five projects (Investment alternatives) are computed based on Fuzzy TOPSIS. Finally, from the findings of this work, the projects are ranked from most important to least important.