Abstract:

       An improved grey relevance model is presented to assess the policy associated with equipment investment in view of scarce information in investment of railway handling facilities. The model improves the deficiency of "only rewarding goodness without punishing badness" in traditional grey model. It is applied to the comparison of rent and purchase of railway handling facilities. Its effectiveness and feasibility are shown by comparison with the results of a traditional model.

Key words: railway handling facility, investment decision, grey relevance model