Ranking of decision-making units with fuzzy inputs and outputs using cross-efficiency model and fuzzy ranking function
محورهای موضوعی : International Journal of Data Envelopment Analysis
1 - گروه ریاضی، دانشگاه آزاد اسلامی واحد کرمان، کرمان، ایران
کلید واژه: Data Envelopment Analysis, Cross-Sectional Efficiency, Ranking, Ranking Function,
چکیده مقاله :
Many definitions and concepts are uncertain. Here it is necessary to compare uncertain data, in this comparison the decision maker faces a kind of uncertainty that is related to the lack of precise and firm demarcation of concepts. These concepts cannot be argued, inferred and decided with Aristotelian logic, which requires precise and quantitative data. Fuzzy set theory, by using specific models, is able to give mathematical formulation to many concepts, variables and systems that are imprecise and vague and provides the basis for inference and decision-making under conditions of uncertainty. In this article, we will use our efforts in this direction. We will evaluate the decision-making units while the inputs and outputs are fuzzy, and in this evaluation, we will rank the decision-making units with the help of the cross-efficiency model and the use of the fuzzy ranking function.
Many definitions and concepts are uncertain. Here it is necessary to compare uncertain data, in this comparison the decision maker faces a kind of uncertainty that is related to the lack of precise and firm demarcation of concepts. These concepts cannot be argued, inferred and decided with Aristotelian logic, which requires precise and quantitative data. Fuzzy set theory, by using specific models, is able to give mathematical formulation to many concepts, variables and systems that are imprecise and vague and provides the basis for inference and decision-making under conditions of uncertainty. In this article, we will use our efforts in this direction. We will evaluate the decision-making units while the inputs and outputs are fuzzy, and in this evaluation, we will rank the decision-making units with the help of the cross-efficiency model and the use of the fuzzy ranking function.
[۱] جهانشاهلو غلامرضا، حسین زاده لطفی فرهاد ، نیک مرام هاشم، تحلیل پوشش داده ها و کاربردهای آن، دانشگاه آزاد اسلامی واحد علوم و تحقیقات.
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[11] Khodabakhshi, M. Aryavash, K: Ranking units with fuzzy data in DEA. Data Envel, Anal. Decis Sci, 2014, 1-10 (2014)
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Available online at http://ijdea.srbiau.ac.ir
Int. J. Data Envelopment Analysis (ISSN 2345-458X)
Vol. 12, No. 4, Year 2024 Article ID IJDEA-00422, Pages 8-20
Research Article
International Journal of Data Envelopment Analysis Science and Research Branch (IAU)
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Ranking decision-making units with fuzzy inputs and outputs using the cross-efficiency model and fuzzy ranking function
E. Abdollahi 1
Department of Mathematics, Kerman Branch, Islamic Azad University of Kerman, Iran
Received 12 March 2024, Accepted 29 July 2024
Abstract
Data envelopment analysis is a mathematical technique for examining the performance of decision-making units with multiple inputs and multiple outputs. In data envelopment analysis, one of the methods that evaluate decision-making units is the intersection efficiency method. In this paper, this method is used to evaluate decision-making units with fuzzy inputs and outputs, and we use the ranking function for ranking.
Keywords: Data envelopment analysis, intersection efficiency, ranking, ranking function
[1] Corresponding author: Email: abodlahi.eskandar@gmail.com
1. Introduction
Many definitions and concepts are characterized by uncertainty. It is necessary that uncertain data be compared. In this comparison, the decision-maker is faced with a type of uncertainty that is related to the lack of precise and firm boundaries of concepts. These concepts cannot be reasoned, inferred, or decided upon using Aristotelian logic, which requires precise and quantitative data. The fuzzy set theory, by employing specific models, is able to mathematically formulate many concepts, variables, and systems that are imprecise and ambiguous, thereby providing a foundation for inference and decision-making under conditions of uncertainty. In this paper, efforts are made in this regard to evaluate decision-making units while their inputs and outputs are fuzzy. In this evaluation, decision-making units are ranked with the aid of the cross-efficiency model and the fuzzy ranking function.
Data Envelopment Analysis (DEA) is a well-established non-parametric technique for evaluating the relative efficiency of decision-making units (DMUs) that utilize multiple inputs to produce multiple outputs. Introduced by Charnes et al. (1978), [1]. DEA has been widely applied in various sectors, including healthcare, banking, education, and manufacturing, to assess performance and identify best practices [2,3,4]. By constructing an efficient frontier based on observed data, DEA compares each DMU against the most efficient units, providing insights into operational effectiveness and areas for improvement [5].
DEA models can generally be categorized into input-oriented and output-oriented approaches, depending on whether the goal is to minimize inputs for a given level of outputs or maximize outputs for a given level of inputs [6]. Over the years, numerous extensions of DEA have been proposed to address challenges such as the presence of undesirable outputs, negative data, and uncertain information [7]. Among these extensions, cross-efficiency DEA has gained significant attention for ranking DMUs by incorporating both self-evaluation and peer-evaluation mechanisms, leading to more comprehensive performance assessments [8].
In practical applications, DEA has demonstrated significant advantages, such as its ability to handle multiple inputs and outputs without requiring an explicit functional form. However, it also has limitations, including sensitivity to data quality and the challenge of distinguishing between efficient DMUs when multiple units achieve the highest efficiency score. Recent advancements, such as the integration of fuzzy logic and artificial intelligence with DEA, aim to enhance its applicability and robustness in complex decision-making environments [9,10].
Puri and Yadav (2014) developed a fuzzy DEA model that incorporates undesirable fuzzy outputs, addressing the challenge of imprecise input/output data in real-world scenarios [11]. They applied their model to evaluate the efficiency of Indian public sector banks from 2009 to 2011, demonstrating how undesirable outputs and data uncertainty impact efficiency assessments. Dotoli et al. (2015) developed a cross-efficiency fuzzy DEA method to evaluate the performance of decision-making units (DMUs) under uncertainty using triangular fuzzy numbers. They applied their approach to assess and rank healthcare systems in Southern Italy, demonstrating its effectiveness in handling uncertainty and supporting policy reforms [12]. Mashayekhi et al. (2016) introduced a multi-objective portfolio selection model that integrates DEA cross-efficiency with the Markowitz mean-variance model, incorporating trapezoidal fuzzy numbers to handle uncertainty in asset returns. Their model, tested on 52 firms from the Iranian stock exchange, demonstrated better performance compared to traditional Markowitz and DEA models by considering return, risk, and efficiency simultaneously [13]. Meng and Xiong (2021) introduced a logical efficiency decomposition approach for general two-stage systems by incorporating cross-efficiency evaluation, addressing the limitations of traditional "black-box" DEA models. They proposed a leader-follower method to decompose system efficiency and applied multiplicative hesitant fuzzy elements (MHFEs) to represent cross-efficiency relationships between DMUs. Their approach enhances evaluation accuracy by ensuring consistent preference relations and was successfully applied to assess the efficiency of nine top universities in China [14]. Liu et al. (2021) proposed a novel fuzzy cross-efficiency evaluation method in DEA that simultaneously considers all possible weight combinations for DMUs, eliminating the need for weight selection. They employed the α-level-based approach to develop a pair of linear programs that calculate the lower and upper bounds of fuzzy efficiency scores, demonstrating enhanced discrimination power in ranking DMUs under fuzzy conditions [15]. Sharafi et al. (2022) proposed a novel fuzzy DEA model for green supplier selection, incorporating expert votes to enhance decision-making in green supply chain management. They introduced an improved cross-efficiency method using a secondary goal model based on the fuzzy CODAS approach, which was applied to an automotive group, achieving a complete ranking of green suppliers [16]. Soltanifar et al. (2022) introduced a modified DEA cross-efficiency method that addresses the challenges of negative data and the limitations of traditional cross-efficiency ranking methods. They proposed a new non-radial model to handle negative data and developed a secondary goal model to resolve the issue of multiple optimal solutions. Additionally, they integrated a hybrid MADM-DEA approach using the fuzzy VIKOR method to improve result aggregation. The proposed models were applied to a real-world supplier selection problem, demonstrating their effectiveness in ranking suppliers under complex conditions [17]. Song et al. (2023) proposed a novel group decision-making (GDM) method that integrates the DEA cross-efficiency approach with regret theory to handle multi-granular hesitant fuzzy linguistic information (MGDM-RCE). Their approach accounts for decision-makers' non-rational behavior and varying granularity scales by developing cross-efficiency models based on regret-rejoice utility values, providing cross-efficiency intervals for DMUs. An extended stochastic cross-efficiency technique is introduced to finalize rankings, with the method demonstrating superior stability and robustness compared to traditional techniques like VIKOR and TOPSIS through sensitivity and comparative analyses [18]. Zhang et al. (2024) introduced a stochastic cross-efficiency DEA approach based on prospect theory to enhance fairness and transparency in public procurement tenders. Their method includes cross-efficiency DEA models that consider experts' risk behaviors to maximize gains and minimize losses, and employs a stochastic Benefit-of-the-Doubt (BoD) model with Monte Carlo simulation to aggregate diverse evaluations without pre-defined weights. Additionally, hesitant fuzzy linguistic term sets are used to handle uncertainty in qualitative assessments, ensuring more robust and fair bidder rankings [19].
This study aims to address these challenges by proposing a cross-efficiency DEA model with fuzzy inputs and outputs, incorporating a suitable fuzzy ranking function to achieve a reliable and interpretable ranking of DMUs. A practical application in the banking sector is provided to validate the effectiveness of the proposed approach.
2. The fuzzy Sexton model (fuzzy cross-efficiency) is utilized with the fuzzy ranking function when all inputs and outputs are fuzzy.
In this paper, the process of forming the cross-efficiency table (Sexton model) for fuzzy inputs and outputs is followed. Triangular fuzzy numbers are considered, and decision-making units are ranked using the fuzzy ranking function. To achieve this goal, the fuzzy inputs and outputs are considered as follows.
This means that all inputs and outputs are considered as triangular fuzzy numbers.
Now, the following fuzzy CCR model is considered.
The above fuzzy model is expanded as follows:
Model (1) is the dual form of the CCR envelopment model. Considering the relationships between the dual model and the original model, and taking into account that in the envelopment form , the corresponding constraint
can be less than or equal to one. This means that:
Therefore, model (2) is considered as follows:
In model (3), is a positive parameter representing the importance of the objective functions such that
and the model is solved and
is assumed to be the optimal solution of the model. In this case, the efficiency is calculated as follows:
Therefore, it is obtained that:
The element of the fuzzy cross-efficiency table is
.
Considering the above calculations, the fuzzy cross-efficiency table is presented as follows:
Therefore, it is obtained that:
Table (1): Fuzzy Cross-Efficiency Table
average |
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⋮ | ⋮ | ⋮ | ⋮ |
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The above table, in which all elements are triangular fuzzy numbers, represents the efficiency of decision-making units in the fuzzy state. As observed, the average is also a triangular fuzzy number. These triangular fuzzy averages must be compared with each other, and for this comparison, the fuzzy ranking function is used. For this purpose, one of the fuzzy number ranking methods that better aligns with the problem's conditions is applied. Various methods have been proposed for comparing and ordering fuzzy numbers, which is a very important process in decision-making. Each method has its advantages and disadvantages depending on its practical application.
The following method is used to compare the averages.
Let and
be assumed as triangular fuzzy numbers. They are defined as follows:
3. Practical Example
Ten branches of a commercial bank are studied, and the required information from these ten bank branches is obtained as shown in Tables (2), (3), (4), (5), and (6). Model (3) is solved, and the cross-efficiency tables are obtained as presented in Tables (8), (9), and (10). The efficiency results of the decision-making units are provided in Tables (11), (12), and (13). The fuzzy averages are calculated according to Table (14), and the ranking of the decision-making units is performed in Table (15).
Table (2): Lower Bounds of Inputs for Decision-Making Units
Paid Interest | Generated Claims | Personnel Score | Bank Branch |
347912609 | 166965005 | 5/42 | DMU1 |
321087157 | 1364254263 | 6/5 | DMU2 |
439622053 | 1021540167 | 5/13 | DMU3 |
247470622 | 1023094065 | 7/58 | DMU4 |
28332000 | 244442242 | 7/58 | DMU5 |
175107405 | 150114017 | 3/89 | DMU6 |
55843067 | 41603512 | 4/44 | DMU7 |
5079356 | 1025368685 | 2/69 | DMU8 |
321956067 | 1259611949 | 2/26 | DMU9 |
58700000 | 1720212885 | 2/77 | DMU10 |
Table (3): Midpoint of Inputs for Decision-Making Units
Paid Interest | Generated Claims | Personnel Score | Bank Branch |
6267251735 | 3204527225 | 11/505 | DMU1 |
13974801379 | 5420093131 | 17/77571429 | DMU2 |
2430817731 | 4062997330 | 14/77714286 | DMU3 |
3264590279 | 5811247992 | 14/939228571 | DMU4 |
8935005782 | 3728154627 | 14/79285714 | DMU5 |
5148882350 | 4825940830 | 11/85928571 | DMU6 |
7333046577 | 4557896111 | 10/82642857 | DMU7 |
4346972893 | 3925577955 | 10/1457142 | DMU8 |
7062857806 | 5262472780 | 15/90214286 | DMU9 |
8880600175 | 4451249734 | 13/45428571 | DMU10 |
Table (4): Upper Bounds of Inputs for Decision-Making Units
Paid Interest | Generated Claims | Personnel Score | Bank Branch |
30033076818 | 5826283949 | 21/61 | DMU1 |
94870216509 | 15713640424 | 56/23 | DMU2 |
9958384916 | 11969476089 | 38/59 | DMU3 |
17958774018 | 30435770419 | 31/43 | DMU4 |
82231846069 | 11450174945 | 26/41 | DMU5 |
29728030018 | 15105382313 | 19/31 | DMU6 |
36434239083 | 11461622508 | 25/01 | DMU7 |
19571582641 | 12424040548 | 22/8 | DMU8 |
57849361275 | 18113748298 | 31/9 | DMU9 |
91314625872 | 12448647772 | 33/24 | DMU10 |
Table (5): Lower Bounds of Outputs for Decision-Making Units
Received Fee 05 | Received Profit 04 | Facilities 03 | Other Deposits 02 | Total Deposits 01 | Branch |
5162000 | 38368691 | 848671179 | 28948043462 | 7098487595 | DMU1 |
4405000 | 42883893 | 566162650 | 23631050649 | 7949322656 | DMU2 |
7300000 | 36411899 | 864134766 | 38631972139 | 14995970790 | DMU3 |
18275000 | 77239155 | 895838606 | 26432773959 | 18514914833 | DMU4 |
3925000 | 1431607 | 18843288 | 19275628277 | 17332785899 | DMU5 |
11749913 | 56474 | 4024246 | 21779585799 | 20385936597 | DMU6 |
1106670 | 391780 | 569445 | 9327588934 | 7452604318 | DMU7 |
650000 | 25128335 | 221934579 | 28111168328 | 6146639414 | DMU8 |
17733000 | 25582456 | 1367871203 | 20439226024 | 27850207872 | DMU9 |
3500000 | 27773398 | 5179767795 | 2845411692 | 10096103316 | DMU10 |
Table (6): Midpoint of Outputs for Decision-Making Units
Received Fee 05 | Received Profit 04 | Facilities 03 | Other Deposits 02 | Total Deposits 01 | Branch |
5162000 | 38368691 | 848671179 | 5572985238 | 52171726468 | DMU1 |
4405000 | 42883893 | 566162650 | 91501177806 | 92582493774 | DMU2 |
7300000 | 36411899 | 864134766 | 7200492720 | 80053680037 | DMU3 |
18275000 | 77239155 | 895838606 | 93783934491 | 80184379532 | DMU4 |
3925000 | 1431607 | 18843288 | 84640654618 | 89211750661 | DMU5 |
11749913 | 56474 | 4024246 | 72319356101 | 80255164183 | DMU6 |
1106670 | 391780 | 569445 | 46608470345 | 69565403708 | DMU7 |
650000 | 25128335 | 221934579 | 59838074926 | 50638122921 | DMU8 |
17733000 | 25582456 | 1367871203 | 88236906513 | 81830300111 | DMU9 |
3500000 | 27773398 | 5179767795 | 85908459121 | 86094189632 | DMU10 |
Table (7): Upper Bounds of Outputs for Decision-Making Units
Received Fee 05 | Received Profit 04 | Facilities 03 | Other Deposits 02 | Total Deposits 01 | Branch |
747392532 | 305467932 | 6914738665 | 121751849411 | 122467919047 | DMU1 |
15347945440 | 2306896375 | 22330988268 | 329970969669 | 378785621113 | DMU2 |
5720495923 | 1057234112 | 14534600915 | 167941180111 | 144962760424 | DMU3 |
17734125040 | 1683454030 | 24239290627 | 353170012187 | 320467175205 | DMU4 |
1939809308 | 457407119 | 19805543528 | 390987804421 | 26782666394 | DMU5 |
11142908153 | 2688388239 | 35304269319 | 211466703060 | 311973279912 | DMU6 |
3956028971 | 792206863 | 15460389283 | 124678248906 | 266434914435 | DMU7 |
6055939136 | 570261939 | 8069534218 | 140587061901 | 188565753715 | DMU8 |
18411137172 | 517953877 | 20717137949 | 259004083181 | 232634001693 | DMU9 |
30782513082 | 2316300360 | 216266923578 | 355691625890 | 443720575872 | DMU10 |
Table (8): Cross-Efficiency (Lower Bound) for Decision-Making Units
0092/0 | 0032/0 | 0075/0 | 0092/0 | 0073/0 | 0115/0 | 0035/0 | 0078/0 | 0089/0 | 0063/0 |
0124/0 | 0040/0 | 0095/0 | 0102/0 | 0054/0 | 0091/0 | 0030/0 | 113/0 | 0057/0 | 0071/0 |
0128/0 | 0041/0 | 0096/0 | 0103/0 | 0058/0 | 0094/0 | 0031/0 | 0115/0 | 0060/0 | 0075/0 |
0129/0 | 0042/0 | 0096/0 | 0103/0 | 0059/0 | 0095/0 | 0032/0 | 0116/0 | 0060/0 | 0076/0 |
0079/0 | 0028/0 | 0071/0 | 0085/0 | 0083/0 | 0131/0 | 0039/0 | 0070/0 | 0097/0 | 0058/0 |
0092/0 | 0032/0 | 0075/0 | 0092/0 | 0073/0 | 0115/0 | 0035/0 | 0078/0 | 0089/0 | 0063/0 |
0091/0 | 0032/0 | 0076/0 | 0093/0 | 0077/0 | 0121/0 | 0037/0 | 0079/0 | 0091/0 | 0063/0 |
0094/0 | 0033/0 | 0077/0 | 0095/0 | 0076/0 | 0119/0 | 0036/0 | 0081/0 | 0089/0 | 0064/0 |
0039/0 | 0013/0 | 0033/0 | 0045/0 | 0029/0 | 0049/0 | 0014/0 | 0019/0 | 0065/0 | 0023/0 |
0133/0 | 0044/0 | 0096/0 | 0102/0 | 0064/0 | 0097/0 | 0033/0 | 0117/0 | 0063/0 | 0082/0 |
Table (9): Cross-Efficiency (Midpoint) for Decision-Making Units
0589/0 | 0694/0 | 0680/0 | 0809/0 | 0707/0 | 0871/0 | 0780/0 | 0693/0 | 0660/0 | 0837/0 |
0537/0 | 0656/0 | 0626/0 | 0874/0 | 0590/0 | 0802/0 | 0671/0 | 0696/0 | 0605/0 | 0797/0 |
0544/0 | 0668/0 | 0628/0 | 0877/0 | 0598/0 | 0810/0 | 0681/0 | 0703/0 | 0611/0 | 0809/0 |
0545/0 | 0671/0 | 0628/0 | 0879/0 | 0601/0 | 0812/0 | 0684/0 | 0705/0 | 0613/0 | 0812/0 |
0563/0 | 0631/0 | 0637/0 | 0688/0 | 0721/0 | 0797/0 | 0763/0 | 0642/0 | 0641/0 | 0777/0 |
0589/0 | 0694/0 | 0680/0 | 0809/0 | 0707/0 | 0871/0 | 0780/0 | 0693/0 | 0660/0 | 0837/0 |
0584/0 | 0690/0 | 0676/0 | 0799/0 | 0712/0 | 0861/0 | 0780/0 | 0692/0 | 0658/0 | 0834/0 |
0591/0 | 0703/0 | 0684/0 | 0824/0 | 0711/0 | 0875/0 | 0785/0 | 0704/0 | 0663/0 | 0841/0 |
0431/0 | 0453/0 | 0491/0 | 0495/0 | 0496/0 | 0633/0 | 0454/0 | 0424/0 | 0467/0 | 0541/0 |
0550/0 | 0682/0 | 0627/0 | 0874/0 | 0608/0 | 0813/0 | 0690/0 | 0706/0 | 0615/0 | 0824/0 |
Table (10): Cross-Efficiency (Upper Bound) for Decision-Making Units
4765/0 | 7833/0 | 4427/0 | 6014/0 | 1,0000 | 1,0000 | 1,0000 | 9400/0 | 7954/0 | 1,0000 |
2504/0 | 7960/0 | 4875/0 | 6400/0 | 1,0000 | 1,0000 | 6943/0 | 8106/0 | 7337/0 | 1,0000 |
2506/0 | 7965/0 | 4882/0 | 6403/0 | 1,0000 | 1,0000 | 6942/0 | 8105/0 | 7349/0 | 1,0000 |
2507/0 | 7966/0 | 4884/0 | 6404/0 | 1,0000 | 1,0000 | 6941/0 | 8104/0 | 7353/0 | 1,0000 |
2742/0 | 6783/0 | 3609/0 | 5307/0 | 1,0000 | 7665/0 | 1,0000 | 9321/0 | 7773/0 | 9008/0 |
2765/0 | 7833/0 | 4427/0 | 6014/0 | 1,0000 | 1,0000 | 1,0000 | 9400/0 | 7954/0 | 1,0000 |
2776/0 | 7771/0 | 4300/0 | 5932/0 | 1,0000 | 9571/0 | 1,0000 | 9502/0 | 7842/0 | 1,0000 |
2791/0 | 7941/0 | 4438/0 | 5987/0 | 1,0000 | 1,0000 | 1,0000 | 9453/0 | 7865/0 | 1,0000 |
1927/0 | 5024/0 | 3173/0 | 4108/0 | 6880/0 | 8522/0 | 8559/0 | 6312/0 | 6463/0 | 6308/0 |
2511/0 | 7949/0 | 4874/0 | 6423/0 | 1,0000 | 1,0000 | 6953/0 | 8031/0 | 7301/0 | 1,0000 |
Table (11): Lower Bound Average Efficiency of Decision-Making Units
Efficiency | DMUs |
0100/0 | DMU1 |
0034/0 | DMU2 |
0079/0 | DMU3 |
0091/0 | DMU4 |
0065/0 | DMU5 |
0103/0 | DMU6 |
0032/0 | DMU7 |
0087/0 | DMU8 |
0076/0 | DMU9 |
0064/0 | DMU10 |
Table (12): Midpoint Efficiency of Decision-Making Units
Efficiency | DMUs |
0552/0 | DMU1 |
0654/0 | DMU2 |
0636/0 | DMU3 |
0793/0 | DMU4 |
0645/0 | DMU5 |
0814/0 | DMU6 |
0716/0 | DMU7 |
0666/0 | DMU8 |
0619/0 | DMU9 |
0791/0 | DMU10 |
Table (13): Upper Bound Average Efficiency of Decision-Making Units
Efficiency | DMUs |
2579/0 | DMU1 |
7503/0 | DMU2 |
4389/0 | DMU3 |
5899/0 | DMU4 |
9688/0 | DMU5 |
9576/0 | DMU6 |
8634/0 | DMU7 |
8574/0 | DMU8 |
7519/0 | DMU9 |
6532/0 | DMU10 |
Table (14): Based on the calculations, the following table is obtained
Fuzzy Average Efficiency | DMUs |
| DMU1 |
| DMU2 |
| DMU3 |
| DMU4 |
| DMU5 |
| DMU6 |
| DMU7 |
| DMU8 |
| DMU9 |
| DMU10 |
Table (15): Ranking of Decision-Making Units
10 | 9 | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 1 |
|
9 | 2 | 7 | 8 | 1 | 10 | 5 | 4 | 6 | 3 | Rank |
Here, the fuzzy averages related to the DMUs must be compared. In this comparison, any DMU with a better average is considered more efficient.
The following method is used to compare the fuzzy numbers:
Let and
be triangular fuzzy numbers.
We define:
Therefore, we have:
Based on the above definition and Table (14), it is obtained that:
By observing the above calculations, it is observed that:
The ranking of the decision-making units is presented as follows.
Table (15) shows the ranking of decision-making units (DMUs), where each DMU represents a branch of a commercial bank.
DMU (6) has been assigned the 1st rank. By examining the input and output Tables (3), (4), (5), (6), (7), and (8), it is observed that this DMU, on average, has the lowest input and the highest output compared to other DMUs. Therefore, assigning the 1st rank to this unit is justifiable.
DMU (5) has been assigned the 10th rank, meaning it is the weakest decision-making unit among the ten DMUs. By reviewing the input and output Tables (3), (4), (5), (6), (7), and (8), it is evident that this DMU, on average, has the highest input and the lowest output compared to other DMUs. Thus, assigning the 10th rank to this unit is also reasonable. Similarly, the rankings of other DMUs can be interpreted through their comparisons.
4. Conclusion
In this study, the cross-efficiency DEA model was employed to evaluate decision-making units (DMUs) with fuzzy inputs and outputs. The proposed approach incorporated a fuzzy ranking function to achieve a comprehensive ranking of DMUs, ensuring a more accurate and robust assessment in uncertain environments. A practical case study involving ten branches of a commercial bank was conducted to demonstrate the applicability of the method. The obtained rankings were analyzed and validated against real-world data, confirming the effectiveness of the model in handling fuzzy data and providing meaningful insights for decision-makers.
The results of this study highlight the importance of using fuzzy cross-efficiency models in environments characterized by uncertainty and imprecision, as they offer a more flexible and reliable alternative to traditional crisp DEA models. The application of triangular fuzzy numbers and the fuzzy ranking function allowed for better differentiation among DMUs, addressing potential limitations in conventional efficiency evaluation techniques.
Future research can further extend the proposed model by incorporating advanced fuzzy methods, such as intuitionistic fuzzy sets or interval-valued fuzzy sets, to enhance the model's ability to handle more complex uncertainties. Additionally, integrating artificial intelligence techniques, such as machine learning, could improve the adaptability and scalability of DEA models in large-scale applications across various industries.
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