A Hybrid Fuzzy Outranking Approach for Group Decision-Making under Uncertainty

Abstract

Portfolio selection is a hot topic in the research of smart Finance and Economics. In order to select the preferred stocks in a Portfolio, real-word decisions need to make to solve problems involve conflicting systems of criteria, uncertainty and imprecise information, especially those involve a group of decision makers (DMs) where a reduction of different individual preferences on a given set to a single collective preference, we consider a hybrid fuzzy Electre I approach for group decision-making under a fuzzy environment. The Electre method and its derivatives are prominent outranking approaches in Multi-criteria decision analysis (MCDA), which is a widely used decision methodology that can improve the quality of group multiple criteria decisions by making the processes more explicit, rational and efficient. In this study, an alternative fuzzy outranking approach based on Electre I is proposed to consider the imprecise, uncertain, and linguistic assessments provided by a group of DMs. In this approach, the Electre I method is extended to take into account the uncertain, imprecise and linguistic assessments, besides, an outranking relation is defined by pairwise comparisons and the use of decision graphs to determine which action is preferable, incomparable or indifferent in the fuzzy environment. Feasibility and effectiveness of the proposed method are illustrated using a numerical example.