Fuzzy Goal Programming applied to the process of capital budget in an economic environment under uncertainty

Abstract

The Goal Programming (GP) is a multi-criteria approach of Operational Research that has been used for solving complex decision problems. This paper proposes a new Fuzzy Goal Programming (FGP) model to handle the process of capital budget of companies in an economic environment under uncertainty. For performance comparison purposes, the FGP and another recently published model developed for the same purposes were applied to data from a company that was the object of the study. The modeling and optimization were made with the GAMS software - 23.6.5 and using the CPLEX solver. The results obtained from the FGP model provided higher improvements than those obtained with the alternative model, as for example: increased profitability index, reduced payback and better application of the capital available in the budget. Furthermore, the FGP model has flexibility features that allow the manager to simulate, quickly and easily obtaining results about scenarios under uncertainty.