A New Approach to Solve Fuzzy Data Envelopment Analysis Model Based on Uncertainty

Maryam Olfati,Asad Khan,Seyed Hadi Nasseri,Wenjun Yuan

doi:10.1109/access.2020.3022158

Abstract

Many problems in operations research including problems from management, production planning and scheduling, transportation, location, and many others necessitate decision making in the presence of uncertainty. Therefore, many theories and methodologies have been developed to deal with optimization problems under uncertainty in general. To understand uncertain data envelopment analysis models, the process was started by introducing the definition of uncertain variables, uncertain vectors, fuzzy linear programming (FLP). Selection criteria of an incoming vector in improving uncertain linear programming is established along with its unbounded nature. This paper based on the established theoretical framework proposes an alternative linear programming model that can include some uncertainty information. Finally, input-oriented CCR model with fuzzy variables is developed and an effective approach for measuring efficiency is demonstrated with a numerical example.

Highlights

For efficiency analysis of business entities or organisation, data envelopment analysis (DEA) is a well-known technique
Fuzzy DEA models take the form of fuzzy linear programming (FLP) and we can find few papers solved by this method
NUMERICAL EXAMPLE Since efficiency has great importance in the banking industry, so we considered 8 Meli bank branches in Iran to clarify the performance of our proposed approach in this study as 8 DMUs

Summary

INTRODUCTION

For efficiency analysis of business entities or organisation, data envelopment analysis (DEA) is a well-known technique. This is evident from the number of documents at the α-level and published in the DEA fuzzy literature In this approach, the main idea is to convert the fuzzy CCR model into a pair of parametric programs to find the lower and upper limits of the α-level member functions of the efficiency score. The fuzzy order approach is another popular technique that has attracted much attention in the fuzzy DEA literature In this approach, the main idea is to find the fuzzy efficiency score of the DMU using fuzzy linear programs that require the order of fuzzy sets. Kao and Liu [10] used the concept of the fuzzy sets theory for representing imprecise data They were studying the efficiencies of university libraries in Taiwan as a real-world problem.

DEFINITIONS AND FUNDAMENTAL BACKGROUNDS

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FUZZY MATHEMATICAL PROGRAMMING

CONCLUSION