An ideal-seeking fuzzy data envelopment analysis framework

Date

2010

Advisors

Journal Title

Journal ISSN

ISSN

Volume Title

Publisher

Elsevier

Type

Article

Peer reviewed

Yes

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.

Description

Keywords

Data envelopment analysis, Theory of displaced ideal, Fuzzy mathematical programming

Citation

Hatami-Marbini, A., Saati, S. and Tavana, M. (2010) An ideal-seeking fuzzy data envelopment analysis framework. Applied Soft Computing, 10 (4), pp. 1062-1070

Rights

Research Institute

Centre for Enterprise and Innovation (CEI)