Evaluating fuzzy risk based on a new method of ranking fuzzy numbers using centroid of centroids

Abstract

This paper describes a method to rank fuzzy numbers based on centroid of centroids of fuzzy numbers and emphasises the use of the subjectivity of the decision maker's view point, such as optimistic or pessimistic. Using the decision maker's view point and index of modality, a ranking index of each fuzzy number is calculated which serves as a criterion for ranking fuzzy numbers. The proposed fuzzy ranking method is used to analyse the fuzzy risk involved in manufacturing products by different companies, where the probability of failure of a product is represented by a fuzzy number. The proposed method is more flexible than the existing methods as it takes into consideration the degrees of confidence of decision maker's opinion in both the stages.