Article ID: | iaor2009713 |
Country: | Poland |
Volume: | 35 |
Issue: | 2 |
Start Page Number: | 487 |
End Page Number: | 495 |
Publication Date: | Jan 2006 |
Journal: | Control and Cybernetics |
Authors: | Uemura Yoshiki |
Keywords: | fuzzy sets |
Evaluation of efficiency of each of the DMUs (Decision Making Units) in a company is a very important task. Thus, the studies of evaluation of efficiency are being actively carried out, based on production function. Until quite recently, the loglinear production function (the Cobb–Douglas function) has been used for evaluation purposes. The loglinear model evaluates the DMUs by measuring the average efficiency. Of late, DEA (Data Envelopment Analysis) focused the interest as the available method, in the form of either the CCR (Charnes–Cooper–Rhodes) or the BCC (Banker–Charnes–Cooper) model. However, the DEA approach does not provide for the lower limit of the production set, but only for the upper one. Hence, considering the fact that in the real-life problems the production set ranges between the lower and the upper limit, it is proposed that the possibility production function be constructed by introducing fuzziness into the loglinear production function.