Fuzzy non-radial data envelopment analysis (DEA)measures of technical efficiency in support of an integrated performance measurement system

Konstantinos Triantis

International Journal of Automotive Technology and Management, 2003, vol. 3, issue 3/4, 328-353

Abstract: Most of the empirical literature in data envelopment analysis (DEA) has focused on the computation primarily of radial technical efficiency measures whereas, for the most part, non-radial measures have not been as popular. Even though the radial measures of technical efficiency are commonly used, they fail to satisfy Koopmans' definition of technical efficiency that equates technical efficiency with membership in the efficient subset. Additionally, for most production studies, the traditional assumption of crisp production plans can be substituted with the assumption of fuzzy production plans as proposed by fuzzy set theory. This study proposes a fuzzy DEA approach that computes fuzzy non-radial technical efficiency measures and implements the approach for a newspaper preprint insertion manufacturing process. As a consequence of this implementation, manufacturing process improvement interventions are ecommended. The computation of non-radial efficiency measures in conjunction with the radial measures allows for a more comprehensive integrated performance measurement system.

Keywords: data envelopment analysis; fuzzy set theory; fuzzy production plans; fuzzy radial technical efficiency measures; fuzzy non-radial technical efficiency measures; manufacturing process improvement interventions; integrated performance measurement systems; fuzzy DEA; fuzzy logic. (search for similar items in EconPapers)
Date: 2003
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