Fuzzy DEA: a perceptual evaluation method

DEA (data envelopment analysis) is a non-parametric technique for measuring and evaluating the relative efficiencies of a set of entities with common crisp inputs and outputs. In fact, in a real evaluation problem input and output data of entities evaluated often fluctuate. These fluctuating data can be represented as linguistic variables characterized by fuzzy numbers for reflecting a kind of general feeling or experience of experts. Based on the fundamental CCR model, a fuzzy DEA model is proposed to deal with the efficiency evaluation problem with the given fuzzy input and output data. Furthermore, an extension of the fuzzy DEA model to a more general form is also proposed with considering the relationship between DEA and RA (regression analysis). Using the proposed fuzzy DEA models, the crisp efficiency in CCR model is extended to be a fuzzy number to reflect the inherent uncertainty in real evaluation problems. (C) 2001 Elsevier Science B.V. All rights reserved.