Evaluating Cost Efficiency in Fuzzy Environment by Using Expected Value

Abstract

Today, one of the most fundamental issues within the field of industrial and nonindustrial activities is evaluate the costs performance of the units which are associated with industrial and nonindustrial activities. Data envelopment analysis (DEA) is a nonparametric method for evaluating performance. Fuzzy sets theory is a powerful tool for mentioning ambiguous situations. Traditional DEA models cannot work with fuzzy data therefor there is a need for a method which can evaluate this type of activities. Yet, in fuzzy data envelopment analysis, there isn't a powerful method which can evaluate cost efficiency in fuzzy environment. In this paper, a new methods for obtaining cost efficiency measurement with data set of fuzzy numbers in various conditions (variable return to scale and constant return to scale) is suggested. These consist of situations where prices are fuzzy numbers and unknown exactly at each decision making unit (DMU). All offered methods are applied in an assessment project and results are mentioned.