An Approach Based on Fuzzy DEA to Assess Cost Efficiency of DMUs

Cost efficiency evaluates the ability of a decision making unit (DMU) to produce the current outputs at minimal cost, given its input prices. Classic cost efficiency model considers the situation where input–output data and their corresponding input prices are known exactly for each DMU. However, in actual applications this assumption does not hold. One of the ways to monitor the uncertainty of the data is to use of fussy set theory. This paper proposes a new approach to evaluate fuzzy cost efficiency by using the α-level based approach. Fuzzy data is considered in triangular fuzzy numbers form. Additionally, in this paper, ranking DMUs problem in fuzzy environment is discussed by cost efficiency. Finally, a numerical example is presented to show the applicability and efficiency of the proposed method.