AN EXPERT SYSTEM USING FUZZY SET REPRESENTATIONS FOR RULES AND VALUES TO MAKE MANAGEMENT DECISIONS IN A BUSINESS GAME.

This dissertation reports on an effort to design, construct, test, and adjust an expert system for making certain business decisions. A widely used approach to recurring judgmental decisions in business and other social organizations is the "rule-based decision system". This arrangement employs staff experts to propose decision choices and selections to a decisionmaker. Such decisions can be very important because of the large resources involved. Rules and values encountered in such systems are often vague and uncertain. Major questions explored by this experimental effort were: (1) could the output of such a decision system be mimicked easily by a mechanism incorporating the rules people say they use, and (2) could the imprecision endemic in such a system be represented by fuzzy set constructs. The task environment chosen for the effort was a computer-based game which required player teams to make a number of interrelated, recurring decisions in a realistic business situation. The primary purpose of this research is to determine the feasibility of using these methods in real decision systems. The expert system which resulted is a relatively complicated, feed-forward network of "simple" inferences, each with no more than one consequent and one or two antecedents. Rules elicited from an expert in the game or from published game instructions become the causal implications in these inferences. Fuzzy relations are used to represent imprecise rules and two distinctly different fuzzy set formats are employed to represent imprecise values. Once imprecision appears from the environment or rules the mechanism propagates it coherently through the inference network to the proposed decision values. The mechanism performs as well as the average human team, even though the strategy is relatively simple and the inferences crude linear approximations. Key aspects of this model, distinct from previous work, include: (1) the use of a mechanism to propose decisions in situations usually considered ill-structured; (2) the use of continuous rather than two-valued variables and functions; (3) the large scale employment of fuzzy set constructs to represent imprecision; and (4) use of feed forward network structure and simple inferences to propose human-like decisions