A hybrid fuzzy COPRAS-base-criterion method for multi-criteria decision making

Abstract

Multiple criteria decision making is a mathematical tool for dealing with complex problems like best or optimal selection from various choices. Fuzzy set theory provides a soft computing framework for precise and rigorous study of vague conceptual environment. In this paper, a new hybrid multi-criteria decision-making method consists of group fuzzy COPRAS, and fuzzy BCM is proposed. The aim of the proposed method is to enhance the practical approach of soft computing in selection of stocks for portfolio construction and better return. This method has been executed in two phases. First, using a novel base-criterion method with triangular fuzzy number, the relative optimal weights of specified criteria are extracted from group decision-making process. Then, an approach based on the combination of fuzzy set theory and the complex proportional assessment (COPRAS) is applied to rank the alternatives in uncertain and ambiguous environment. A practical implementation of proposed method in stock selection is another realistic approach of our study. Portfolio is constructed by using the ranking obtained by proposed model. The weight allocation of the stocks is calculated using the ranked assets algorithm. Execution of the proposed model is found to be dominant when compared with the previous studies. The result ensures that the portfolio is capable of giving better returns based on the proposed ranking.