Abstract
A two-stage system composed of three sub-systems, where the independent two sub-systems of the first stage are linked in parallel and then linked to the third sub-system of the second stage in series, known as two-stage parallel-series system. The deterministic two-stage parallel-series system approach is extended to uncertain/imprecise environment, where the data are represented as fuzzy numbers. Using Zadeh extension principle, we develop fuzzy two-stage parallel-series system to determine the lower-upper bound fuzzy efficiencies of the decision making units (DMUs) with the help of α− cut and rank the DMUs using ranking index approach. Proposed methods are illustrated by Taiwan’s non-life insurance companies.
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