Fuzzy trade-offs in data envelopment analysis

Abstract

Production trade-offs represent simultaneous and possible changes to the inputs and outputs in the technology under consideration. However, since trade-offs are illative and subjective, in many real applications, the data of production trade-offs cannot be precisely measured. Occasionally, a crisp trade-off cannot reflect desirable judgment of expert. This paper develops the trade-off approach in data envelopment analysis (DEA) using imprecise trade-offs represented by fuzzy sets. We develop some fuzzy versions of trade-off DEA models by using some ranking methods based on the comparison of α-cuts. We show in numerical examples how our models become useful for detecting sensitive trade-offs. In other words, our approach can be seen as extension of the trade-off approach that provides users with models, which represent real evaluation of decision making units (DMU) with good judgments as possible trade-offs.