The Study of Fuzzy Performance Evaluation Ching-Cheng Shen Graduate Program in Travel Industrial Management Kaohsiung Hospitality College 1, Sung-Ho Rd., Hsiao-Kang, Kaohsiung, Taiwan, R.O.C. Kun-Lin Hsieh*(Corresponding author) Department of Information Management National Taitung University 684, Sec.1, Chung-Hua Rd., Taitung 950, Taiwan, R.O.C. Abstract: - As for the performance comparison, we can compare the difference between the actual performance and ideal performance with simultaneously taking all criteria into consideration. Hence, the practitionerw will meet a problem of MCDM. Besides, the importance of each criterion may have different priority and it should be taken into analysis. In this study, we will apply the concept of fuzzy weight aggregation into performance aggregation. An illustrative example will be also applied to demonstrate the effectiveness of proposed procedure. Key-Words: - multiple criteria decision-making (MDCM), fuzzy weight aggregation (FWA), performance evaluation 1 Introduction The choice of weight value, the summation effect of the weight values for several criterions, and the difference comparison among several performances with weighted consideration frequently bother the practitioner for the issue of multiple criteria decision-making (MDCM) (Zeleny, 1982; Zeleny, 1992, Shen et al., 2006). As for the choice of weight value, it will be not easy to be determined during the multiple criteria consideration for those practitioners. Hence, analytic hierarchy process (AHP) (Saaty, 1980; Lai, et al., 1999; Ramanathan & Ganesh, 1995; Ghodsypour & O’Brien, 1998; Tam & Tummala, 2001; Koe, et al., 1999; Ngai, 2003) was developed to overcome such issue by dividing them into the primary criteria and sub-criteria with hierarchy consideration. The feasible weight value can be computed and the test of consistency can also be made via AHP methodology. However, the test of consistency during AHP frequently limited the real applications. Restated, how to resolve the test of consistency will be a worthy issue to be studies. As for the summation effect of the weight value, the practitioners will face the problem of how to summarize the weight effect of each criterion with the case of several experts. The mean operation was the method frequently been used to compute the weight value of each criterion in such case. However, the variation between different experts will be omitted by using the concept of mean to compute the weight value. Restated, the problem of common consensus during those experts will be met. Generally, the larger importance degree of criterion will denote that the corresponding weight value must set a larger value. As for the difference comparison among criteria’ performance, we frequently apply the standardization or fuzzy membership function into the base of performance evaluation. Restated, it will analyze separately each criterion since making the necessary comparison. Due to overcome such problems mentioned above, therefore, we will initially propose a MDCM based on the fuzzy aggregation operator, one is for weight value (it is called as FWA) and another is for performance (it is called as FPA), to address the problem of weight value. The weight value of each criterion will be obtained with the consideration of the average intension for each criterion and the common consensus for experts at the same time (Shen et al., 2006). Then, we will incorporate FWA and FPA to analyze the MCDM problem. Finally, we also take an example, owing to the competence analysis for the citied Motels at Taiwan, to demonstrate the rationality and feasibility of our proposed model. Proceedings of the 11th WSEAS International Conference on APPLIED MATHEMATICS, Dallas, Texas, USA, March 22-24, 2007 18