Measuring paper industry's ecological performance in an imprecise and vague scenario: a fuzzy DEA-based analytical framework

Abstract

PurposeProductivity improvement is key to sustainability performance improvements of organizations. In a real-world scenario, the nature of inputs and outputs is likely to be imprecise and vague, leading to complexity in comparing firms' efficiency measurements. Implementation of fuzzy-logic based measurement systems is a method for dealing with such cases. This paper presents a fuzzy weight objective function to solve Data Envelopment Analysis (DEA) CCR model for measuring paper mills' performance in India for 15 years.Design/methodology/approachAn integrated methodology is proposed to solve DEA models having fuzzy weights. The fuzzy DEA methodology is an extended version of the DEA approach that researchers have used for performance measurement purposes in imprecise and vague scenarios. The ecological performance of the paper industry is evaluated, considering some desirable and undesirable outputs. The effect of non-discretionary input on the performance of a paper mill is also analyzed.FindingsAnalysis suggests that the productivity of the paper industry is improving consistently throughout the period. The comparative evaluation of methods suggests that a diverse cluster of DMUs and integration of DEA with the fuzzy logic increases the diversity in the efficiency score while DEA-DE imitates the results of CCR DEA.Originality/valueProposed a fuzzy DEA-based analytical framework for measuring the paper industry's ecological performance in an imprecise and vague scenario. The model is tested on data from the paper industry in a developing country context and comparative performance analysis using DEA, fuzzy DEA and DE algorithm is done.