Fuzzy data envelopment analysis based upon fuzzy arithmetic with an application to performance assessment of manufacturing enterprises

Authors:
Ying-Ming Wang;Ying Luo;Liang Liang
Affiliations:
School of Economics & Management, Tongji University, Shanghai 200092, PR China;School of Management, Xiamen University, Xiamen 361005, PR China;School of Management, University of Science and Technology of China, Hefei 230026, PR China
Venue:
Expert Systems with Applications: An International Journal
Year:
2009

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Abstract

Data envelopment analysis (DEA) requires input and output data to be precisely known. This is not always the case in real applications. This paper proposes two new fuzzy DEA models constructed from the perspective of fuzzy arithmetic to deal with fuzziness in input and output data in DEA. The new fuzzy DEA models are formulated as linear programming models and can be solved to determine fuzzy efficiencies of a group of decision-making units (DMUs). An analytical fuzzy ranking approach is developed to compare and rank the fuzzy efficiencies of the DMUs. The proposed fuzzy DEA models and ranking approach are applied to evaluate the performances of eight manufacturing enterprises in China.