Issue: 2022/Vol.32/No.3, Pages 142-151
MODIFICATIONS OF ORDER SCALES FOR ASSESSING DEBTORS
Cite as: A. Wójcicka-Wójtowicz, K. Piasecki. Modifications of order scales for assessing debtors. Operations Research and Decisions 2022: 32(3), 142-151. DOI 10.37190/ord220309
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: order scale, credit scoring, trapezoidal oriented fuzzy numbers
Received: 11 December 2021 Accepted: 22 July 2022
Published online: 22 November 2022