An ideal-seeking fuzzy data envelopment analysis framework

  • Authors:

  • Adel Hatami-Marbini;Saber Saati;Madjid Tavana

  • Affiliations:

  • Faculty of Industrial Engineering, Productivity and System Management, Islamic Azad University of South Tehran Branch, Tehran, Iran;Department of Mathematics, Tehran-North Branch, Islamic Azad University, Tehran, Iran;Management Information Systems, Lindback Distinguished Chair of Information Systems, La Salle University, Philadelphia, PA 19141, USA

  • Venue:
  • Applied Soft Computing
  • Year:
  • 2010

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Abstract

Data envelopment analysis (DEA) is a widely used mathematical programming approach for evaluating the relative efficiency of decision making units (DMUs) in organizations. Crisp input and output data are fundamentally indispensable in traditional DEA evaluation process. However, the input and output data in real-world problems are often imprecise or ambiguous. In this study, we present a four-phase fuzzy DEA framework based on the theory of displaced ideal. Two hypothetical DMUs called the ideal and nadir DMUs are constructed and used as reference points to evaluate a set of information technology (IT) investment strategies based on their Euclidean distance from these reference points. The best relative efficiency of the fuzzy ideal DMU and the worst relative efficiency of the fuzzy nadir DMU are determined and combined to rank the DMUs. A numerical example is presented to demonstrate the applicability of the proposed framework and exhibit the efficacy of the procedures and algorithms.