Cost Efficiency Measures with Trapezoidal Fuzzy Numbers in Data Envelopment Analysis Based on Ranking Functions: Application in Insurance Organization and Hospital

Ali Ebrahimnejad
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Ali Ebrahimnejad: Department of Mathematics, Islamic Azad University–Qaemshahr Branch, Iran

International Journal of Fuzzy System Applications (IJFSA), 2012, vol. 2, issue 3, 51-68

Abstract: Cost efficiency (CE) evaluates the ability to produce current outputs at minimal cost, given its input prices. In ordinary CE model, the input prices are assumed to be definite. In recent years, various attempts have been made to measuring CE when the input prices are as trapezoidal fuzzy numbers. The main contribution of this paper is to provide a new approach for generalizing the CE of decision making units in data envelopment analysis when the input prices are trapezoidal fuzzy numbers, where concepts of fuzzy linear programming problems and CE, are directly used. Here, the author used the linear ranking functions to compare fuzzy numbers. The proposed method is illustrated with two application examples and proves to be persuasive and acceptable in real world systems.

Date: 2012
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