Offshore Decision-making Problems under Fuzzy Environment

Offshore decision-making problems often involve uncertain exchange rates, and the uncertainty may present randomness and/or fuzziness. This paper describes uncertain exchange rates by possibility distributions. A new fuzzy optimization method is developed for offshore decision-making problems, in which the firm’s profit is measured by Lebesgue-Stieltjes (L–S) integral with respect to the credibility distribution of fuzzy exchange rate. When demands are deterministic, we divide the original feasible region into five subregions, and discuss the local optimal solution in each subregion. According to the obtained theoretical results, we design a region decomposition method for the proposed fuzzy optimization model. Finally, we consider an application example about the offshore decision-making problem between China and Brazil to demonstrate our new modeling idea and the efficiency of the solution method. c ©2014 World Academic Press, UK. All rights reserved.