Utility-based hybrid fuzzy axiomatic design and its application in supply chain finance decision making with credit risk assessments

Abstract

The fuzzy axiomatic design (FAD) is an attractive multiple criteria analysis approach due to its novelty in considering the functional requirement of each criterion. However, there are some challenges of the FAD approach in solving multiple experts multiple criteria decision-making problems with hybrid information. This paper dedicates to filling this research gap by introducing a utility-based hybrid FAD approach with an ordinal aggregation method. To do so, methods to calculate the possibility of achieving the functional requirements are firstly proposed to deal with five widely used evaluation expressions. In addition, a target-based weighted average operator is integrated with the FAD method so as to determine the whole ranking set of alternatives. Finally, given different evaluation standards used by different individuals, to avoid losing original opinions in information aggregation process, an ordinal aggregation method is developed to integrate the subordinate rank sets derived by individual experts into a collective one. An application to a credit risk assessment problem in supply chain finance is provided and the comparative analyses are conducted to highlight the developed method.