DEA cross-efficiency framework for efficiency evaluation with probabilistic linguistic term sets

Ling Pan, Zeshui Xu and Peijia Ren

Journal of the Operational Research Society, 2021, vol. 72, issue 5, 1191-1206

Abstract: Data envelopment analysis (DEA) is widely used in various practical problems as a general framework for efficiency-evaluation problems by containing the input-output data. With the increasingly complex factors in practice, portraying the uncertainty in problems is necessary for ensuring the reasonableness of results. As the probabilistic linguistic term set (PLTS) is a powerful tool for depicting uncertain information comprehensively, we aim to propose a DEA cross-efficiency framework for efficiency evaluation under probabilistic linguistic environment, which includes (1) defining the preference-based expectation function of a PLTS, (2) establishing the probabilistic linguistic DEA model, (3) developing an algorithm based on the dual form of the probabilistic linguistic DEA model, and (4) building the positive ideal-seeking cross-efficiency model. Furthermore, simulation tests are made to provide guidance for decision makers on the value assignment in practical efficiency-evaluation problems. A case study is conducted to verify the applicability of the proposed framework.

Date: 2021
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DOI: 10.1080/01605682.2020.1848360

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