Modeling fuzzy data envelopment analysis under robust input and output data

Abstract

This paper offers a fuzzy optimization framework for data envelopment analysis (DEA) to evaluate the relative efficiency of decision making units (DMUs) with parametric interval-valued fuzzy variable-based inputs and outputs. The parametric interval-valued fuzzy variable-based inputs and outputs is employed to capture the uncertainty of data on the basis of professional judgements or empirical estimations. The DEA problem is formulated as fuzzy expectation model with credibility constraints. When the inputs and outputs are mutually independent parametric interval-valued triangular fuzzy variables, we investigate the parametric equivalent representations of expectation objective function and chance constraints. In order to find the optimal solution of our DEA model, a domain decomposition method is proposed. Finally, the numerical example on the sustainable supplier evaluation and selection problem is provided to demonstrate the efficiency of the proposed DEA model and domain decomposition method.