The use of fuzzy logic in coordinating investment projects in the public sector

Abstract

Politics and the professions often have different standpoints on development planning and investment decisions in the public sector. Opposing views, lack of understanding and an inability to accept compromises in the planning and execution of investments frequently cause deviations which ultimately reveal themselves in negativeeconomic consequences. Effective and successful planning and execution of investments in the public sector is one of the key development tasks in a state or local community. For this reason we have undertaken a detailed investigation of the issue with the goal of devising a tool in the form of a model of a system for supportin decision making. In order to make it easier for appraisers and decision makers to express their opinions in a natural and individual manner, we have introduced an appraisal with linguistic values through the use of fuzzy logic. The purpose of this article is to present the characteristics and structure of the fuzzy model for coordinating opinions, and the progress and results of its use in the case of two Slovenian municipalities.

Keywords

• Investment project
• Multiple-criteria decision making
• Public sector
• Linguistic variable
• Fuzzy logic