A fuzzy DEA approach

Elmar Reucher () and Wilhelm Rödder ()
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Elmar Reucher: Lehrstuhl für Betriebswirtschaftslehre, insb. Operations Research FernUniversität
Wilhelm Rödder: Lehrstuhl für Betriebswirtschaftslehre, insb. Operations Research FernUniversität

A chapter in Operations Research Proceedings 2004, 2005, pp 393-399 from Springer

Abstract: Abstract The theoretical concept of data envelopment analysis (DEA) was published by Charnes, Cooper and Rhodes in 1978. It is a powerful tool for assessing the efficiency of decision making units (DMUs) by comparing their respective inputfactors and output quantities. More precisely, the efficiency of a DMU is measured as the relation between the sum of weighted outputs and of weighted inputs, where the weights for a DMU are the solution of a linear optimization problem. But this approach suffers from a lack of objectivity due to the fact that every DMU wants an advantageous evaluation for itself, called self-appraisal in the respective literature. The purpose of this paper is to present an extension of the evaluation process in such a way that every DMU’s performance will be calculated in an objective and fair manner. For this a fuzzy oriented approach will be formulated which yields a nonlinear optimization problem. The resulting input/output weights are a compromise of all DMU’s individual interests. The so far developed theoretical concept will be applied to a company of Taiwanese semiconductor industry. Five DMUs’ efficiencies will be calculated over three years. Professional software solves the nonlinear program and the results permit meaningful economical interpretations.

Keywords: Membership Function; Data Envelopment Analysis; Multiple Input Output; Weighted Input; Linear Optimization Problem (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1007/3-540-27679-3_49

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