Fuzzy DEA (data envelopment analysis) frontiers

Fuzzy DEA (data envelopment analysis) frontiers

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Article ID: iaor2006638
Country: Portugal
Volume: 25
Issue: 1
Start Page Number: 85
End Page Number: 103
Publication Date: Jun 2005
Journal: Investigao Operacional
Authors: , , , ,
Keywords: fuzzy sets
Abstract:

The “fuzzy” DEA frontier is applied in situations where some variables (inputs or outputs) present a certain degree of uncertainty in its measurement, without any assumption about the probability distribution function. We build the efficient frontier taking in account the minor and major values of the input (or output). The efficient frontier is, in that case, a fuzzy set, to which the DMUs have a degree of membership. In order to compute the degree of membership two frontiers are constructed: the optimistic and the pessimistic frontiers. As this indicator is not an efficiency score, we introduce the inverted frontier concept, which allows the fuzzy-DEA efficiency score computation. We developed the case where only one variable presents a certain degree of uncertainty and it is generalised to the case where some or all variables are uncertain.

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