Kishk, M and Al-Hajj, A (2000) Fuzzy modelling of life cycle costs of alternatives with different lives. In: Akintoye, A (ed.) Proceedings of 16th Annual ARCOM Conference, 6-8 September 2000, Glasgow, UK.
Abstract
The necessity of applying fuzzy set theory to life cycle costing (LCC) is highlighted. A computer algorithm for LCC-based decision-making is outlined. This algorithm is based on the fuzzy set theory (FST) and interval analysis. The algorithm is designed around an explicit analytical LCC model. The model was introduced in a form that allows the handling of uncertainties in all input variables for alternatives with different lives. The computer implementation of the model was carefully investigated. The solution of a selected example problem is also included. Analysis results confirm that the proposed model is powerful and transparent. In addition, it is shown that handling of uncertainties within the algorithm is superior to conventional risk assessment techniques. The proposed model is the second in series being developed by the authors to overcome some of the difficulties in the implementation of LCC in the industry. These models will be integrated in a user-friendly LCC-based decision support system.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | decision-making; fuzzy set theory; interval analysis; life cycle costing; risk assessment |
| Index terms: | life cycle cost, decision support, implementation, decision-making, costing, risk assessment, life cycle, modelling, fuzzy set theory |
| Subjects: | research methods, decision analysis, value management, decision-making and optimization, accounting and finance, financial risk, contractual arrangements, analytical methods |
| Topics: | Risk Management, Research Practice, Engineering Principles, Project Management, Cost Management, Procurement |
| Descriptive scope: | 3 PCT |
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