Technical and cost efficiencies with ranking function in fuzzy data envelopment analysis

This paper considers a fuzzy DEA-based model of technical and cost efficiencies with a ranking function. Previous studies of fuzzy DEA model in terms of cost efficiency had critical shortcoming if the unit prices of the inputs are not identical across DMUs in the economy. Therefore, in this paper, a new fuzzy model is proposed by extending the revised scheme of DEA-based technical and cost efficiencies that are free from such inconsistencies. The proposed model is a fuzzy programming problem, and so introducing a ranking function for fuzzy inequalities, it is equivalently transformed into a linear programming problem. Furthermore, comparing the proposed model with the original model, a numerical example derived from hospital data is provided.