Modifications of order scales for assessing debtors

• Authors: WÓJCICKA-WÓJTOWICZ Aleksandra , PIASECKI Krzysztof
• Languages of publication: EN

Abstracts

In previous research, the Extended Order Scale (EOS) dedicated to risk assessment was analysed. It was characterised by a Numerical Order Scale (NOS) evaluated by trapezoidal oriented fuzzy numbers (TrOFNs). However, the research showed that EOS with two-stage orientation phases, was too complicated. Therefore, the main aim of our paper is to simplify a Complete Order Scale (COS) to a zero- or one-stage order scale and a hybrid approach. For this purpose, a way to calculate the scoring function is presented. The results show that changes in the COS structure influence the values of a scoring function. Replacing just one linguistic indicator gives different results. Another finding of the research is the method’s flexibility that allows an expert to individually choose the most suitable COS. The research proves that the boundary between various linguistic labels cannot be precisely defined. However, knowledge of a formal COS structure allows it to be transformed into a less complex one.

Keywords

EN

order scale; credit scoring; trapezoidal oriented fuzzy numbers

• Publisher: Politechnika Wrocławska. Oficyna Wydawnicza Politechniki Wrocławskiej
• Journal: Operations Research and Decisions
• Year: 2022
• Volume: 32
• Issue: 3
• Pages: 142-151

Contributors

author

WÓJCICKA-WÓJTOWICZ Aleksandra

• Department of Operations Research and Mathematical Economics, Pozna´n University of Economics and Business, Pozna´n, Poland

author

PIASECKI Krzysztof

• Institute of Economy and Finance, WSB University in Poznań, Poznań, Poland

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Identifiers

DOI

10.37190/ord220309