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Evaluating Cost Efficiency Using Fuzzy Data Envelopment Analysis method
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Jafar Pourmahmoud *    , Naser Bafek Sharak |
| Azarbaijan Shahid Madani University , pourmahmoud@azaruniv.ac.ir |
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Abstract: (4195 Views) |
Cost efficiency models evaluate the ability of decision-making units (DMUs) to produce current
outputs at minimal cost. In real applications, the observed values of the input-output data and
their corresponding input prices are imprecise and vague. This paper employs a fuzzy data
envelopment analysis (Fuzzy DEA) method to study cost efficiency of DMUs. In previous studies
on the cost efficiency, no attention has been paid to the issue of ranking problem in fuzzy
environment. In addition, adequate accuracy is ignored in regards to appropriate range of fuzzy
cost efficiency scores. In this study, the proposed method is applied to assess fuzzy cost efficiency
in accordance with the -level based approach. In this method, data information is considered
as triangular fuzzy numbers. The main idea is to convert the fuzzy DEA model into a family of
parametric crisp models to estimate the lower and upper bounds of the a-cut of the membership
functions of the cost efficiency measures. Moreover, the problem of ranking DMUs is investigated
based on the fuzzy cost efficiency, using a new method. Finally, the proposed method is illustrated
applying a numerical example, and then comparisons between the proposed method and previous
approaches are carried out.
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| Keywords: Cost Efficiency, Data Envelopment Analysis (DEA), Fuzzy Sets, The a-level Based Approach |
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Full-Text [PDF 424 kb]
(9903 Downloads)
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Type of Study: Original |
Subject:
Mathematical Modeling and Applications of OR
Received: 2021/04/11 | Accepted: 2020/09/20 | Published: 2020/09/20
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