Development of a Modified Fuzzy Data Envelopment Analysis Model Based on Uncertainty Modeling and a Novel Efficiency Function
Abstract
Data Envelopment Analysis (DEA) is a well-established nonparametric method for evaluating the relative efficiency of Decision-Making Units (DMUs). Conventional DEA models assume deterministic input and output data, which is rarely the case in real-world applications characterized by uncertainty and ambiguity. To overcome this limitation, this paper proposes a new fuzzy DEA framework by developing a modified efficiency function that is able to explicitly incorporate data uncertainty through fuzzy numbers. A new weighted cut-based efficiency measure is introduced, which transforms the fuzzy DEA model into an equivalent deterministic linear programming formulation. The theoretical properties of the proposed model, including feasibility, uniformity, and boundedness, are investigated. Numerical experiments based on simulated data demonstrate the effectiveness and robustness of the proposed approach compared with classical DEA and existing fuzzy DEA models. The proposed framework provides a flexible and reliable tool for evaluating efficiency in uncertain environments.
Keywords:
Data envelopment analysis, Fuzzy data envelopment analysis, Uncertainty modeling, Efficiency measurement, LinearizationReferences
- [1] Pereira, M. A., & Camanho, A. S. (2024). The ‘healthcare access and quality index’revisited: A fuzzy data envelopment analysis approach. Expert systems with applications, 245, 123057. https://doi.org/10.1016/j.eswa.2023.123057
- [2] Jin, M., Shi, X., Emrouznejad, A., & Yang, F. (2018). Determining the optimal carbon tax rate based on data envelopment analysis. Journal of cleaner production, 172, 900-908. https://doi.org/10.1016/j.jclepro.2017.10.127
- [3] Wanke, P., Azad, A. K., & Emrouznejad, A. (2018). Efficiency in BRICS banking under data vagueness: A two-stage fuzzy approach. Global finance journal, 35, 58-71. https://doi.org/10.1016/j.gfj.2017.05.001
- [4] Pakravan-Charvadeh, M. R., Flora, C. B., & Emrouznejad, A. (2022). Impact of socio-economic factors on nutrition efficiency: An application of data envelopment analysis. Frontiers in nutrition, 9, 859789. https://doi.org/10.3389/fnut.2022.859789
- [5] Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European journal of operational research, 2(6), 429-444. https://doi.org/10.1016/0377-2217(78)90138-8
- [6] Mergoni, A., Emrouznejad, A., & De Witte, K. (2025). Fifty years of data envelopment analysis. European journal of operational research, 326(3), 389-412. https://doi.org/10.1016/j.ejor.2024.12.049
- [7] Emrouznejad, A., Banker, R. D., & Neralic, L. (2019). Advances in data envelopment analysis: Celebrating the 40th anniversary of DEA and the 100th anniversary of Professor Abraham Charnes’ birthday. European journal of operational research, 278(2), 365–367. https://doi.org/10.1016/j.ejor.2019.02.020
- [8] Shiraz, R. K., Hatami-Marbini, A., Emrouznejad, A., & Fukuyama, H. (2020). Chance-constrained cost efficiency in data envelopment analysis model with random inputs and outputs. Operational research, 20(3), 1863-1898. https://doi.org/10.1007/s12351-018-0378-1
- [9] Zhang, N., Kalhor, A., Azizi, R., & Kazemi-Matin, R. (2023). Improved efficiency assessment in network DEA through interval data analysis: An empirical study in agriculture. RAIRO-operations research, 57(6), 3007-3031. https://doi.org/10.1051/ro/2023154
- [10] Peykani, P., Hosseinzadeh Lotfi, F., Sadjadi, S. J., Ebrahimnejad, A., & Mohammadi, E. (2022). Fuzzy chance-constrained data envelopment analysis: A structured literature review, current trends, and future directions. Fuzzy optimization and decision making, 21(2), 197-261. https://doi.org/10.1007/s10700-021-09364-x
- [11] Peykani, P., Mohammadi, E., Emrouznejad, A., Pishvaee, M. S., & Rostamy-Malkhalifeh, M. (2019). Fuzzy data envelopment analysis: An adjustable approach. Expert systems with applications, 136, 439-452. https://doi.org/10.1016/j.eswa.2019.06.039
- [12] Peykani, P., Mohammadi, E., Pishvaee, M. S., Rostamy-Malkhalifeh, M., & Jabbarzadeh, A. (2018). A novel fuzzy data envelopment analysis based on robust possibilistic programming: Possibility, necessity and credibility-based approaches. RAIRO-operations research-recherche opérationnelle, 52(4-5), 1445-1463. https://doi.org/10.1051/ro/2018019
- [13] Singh, A. P., & Ali, M. (2023). Development of bi-objective fuzzy data envelopment analysis model to measure the efficiencies of decision-making units. Mathematics, 11(6), 1402. https://doi.org/10.3390/math11061402
- [14] Huang, L., & Chen, L. (2025). A novel approach for efficiency evaluation in data envelopment analysis framework with fuzzy stochastic variables: L. Huang, L. Chen. International journal of fuzzy systems, 27(3), 866-881. https://doi.org/10.1007/s40815-024-01811-2
- [15] Nasseri, S. H., Ebrahimnejad, A., & Gholami, O. (2018). Fuzzy stochastic data envelopment analysis with undesirable outputs and its application to banking industry. International journal of fuzzy systems, 20(2), 534-548. https://doi.org/10.1007/s40815-017-0367-1
- [16] Omrani, H., Alizadeh, A., Emrouznejad, A., & Teplova, T. (2022). A robust credibility DEA model with fuzzy perturbation degree: An application to hospitals performance. Expert systems with applications, 189, 116021. https://doi.org/10.1016/j.eswa.2021.116021
- [17] Dehnokhalaji, A., Khezri, S., & Emrouznejad, A. (2022). A box-uncertainty in DEA: A robust performance measurement framework. Expert systems with applications, 187, 115855. https://doi.org/10.1016/j.eswa.2021.115855
- [18] Gerami, J., Mozaffari, M. R., Wanke, P. F., & Tan, Y. (2023). Fully fuzzy DEA: A novel additive slacks-based measure model. Soft computing, 1-25. https://doi.org/10.1007/s00500-023-09254-x
- [19] Peykani, P., Mohammadi, E., & Emrouznejad, A. (2021). An adjustable fuzzy chance-constrained network DEA approach with application to ranking investment firms. Expert systems with applications, 166, 113938. https://doi.org/10.1016/j.eswa.2020.113938
- [20] Izadikhah, M., Roostaee, R., & Emrouznejad, A. (2021). Fuzzy data envelopment analysis with ordinal and interval data. International journal of uncertainty, fuzziness and knowledge-based systems, 29(03), 385-410. https://doi.org/10.1142/S0218488521500173
- [21] Younesi, A., Lotfi, F. H., & Arana-Jiménez, M. (2023). Using slacks-based model to solve inverse DEA with integer intervals for input estimation. Fuzzy optimization and decision making, 22(4), 587-609. https://doi.org/10.1007/s10700-022-09403-1
- [22] Khoshroo, A., Izadikhah, M., & Emrouznejad, A. (2018). Improving energy efficiency considering reduction of CO2 emission of turnip production: A novel data envelopment analysis model with undesirable output approach. Journal of cleaner production, 187, 605-615. https://doi.org/10.1016/j.jclepro.2018.03.232
- [23] Khoshroo, A., Izadikhah, M., & Emrouznejad, A. (2022). Total factor energy productivity considering undesirable pollutant outputs: A new double frontier based malmquist productivity index. Energy, 258, 124819. https://doi.org/10.1016/j.energy.2022.124819
- [24] Taleb, M., Khalid, R., Emrouznejad, A., & Ramli, R. (2023). Environmental efficiency under weak disposability: An improved super efficiency data envelopment analysis model with application for assessment of port operations considering NetZero: M. Taleb et al. Environment, development and sustainability, 25(7), 6627-6656. https://doi.org/10.1007/s10668-022-02320-8
- [25] Li, Y., Li, F., Emrouznejad, A., Liang, L., & Xie, Q. (2019). Allocating the fixed cost: An approach based on data envelopment analysis and cooperative game. Annals of operations research, 274(1), 373-394. https://doi.org/10.1007/s10479-018-2860-9
- [26] Li, F., Emrouznejad, A., Yang, G. L., & Li, Y. (2020). Carbon emission abatement quota allocation in Chinese manufacturing industries: An integrated cooperative game data envelopment analysis approach. Journal of the operational research society, 71(8), 1259-1288. https://doi.org/10.1080/01605682.2019.1609892
- [27] Shi, X., Emrouznejad, A., & Yu, W. (2021). Overall efficiency of operational process with undesirable outputs containing both series and parallel processes: A SBM network DEA model. Expert systems with applications, 178, 115062. https://doi.org/10.1016/j.eswa.2021.115062
- [28] Li, Y., Shi, X., Emrouznejad, A., & Liang, L. (2018). Environmental performance evaluation of Chinese industrial systems: A network SBM approach. Journal of the operational research society, 69(6), 825-839. https://doi.org/10.1057/s41274-017-0257-9
- [29] Mahmoudabadi, M. Z., Azar, A., & Emrouznejad, A. (2018). A novel multilevel network slacks-based measure with an application in electric utility companies. Energy, 158, 1120-1129. https://doi.org/10.1016/j.energy.2018.05.161
- [30] Li, Y., Shi, X., Emrouznejad, A., & Liang, L. (2020). Ranking intervals for two-stage production systems. Journal of the operational research society, 71(2), 209-224. https://doi.org/10.1080/01605682.2018.1535267
- [31] Li, F., Wang, Y., Emrouznejad, A., Zhu, Q., & Kou, G. (2022). Allocating a fixed cost across decision-making units with undesirable outputs: A bargaining game approach. Journal of the operational research society, 73(10), 2309-2325. https://doi.org/10.1080/01605682.2021.1981781
- [32] Omrani, H., Fahimi, P., & Emrouznejad, A. (2022). A common weight credibility data envelopment analysis model for evaluating decision making units with an application in airline performance. RAIRO-operations research, 56(2), 911-930. https://doi.org/10.1051/ro/2022031
- [33] Oukil, A., El-Bouri, A., & Emrouznejad, A. (2022). Energy-aware job scheduling in a multi-objective production environment–An integrated DEA-OWA model. Computers & industrial engineering, 168, 108065. https://doi.org/10.1016/j.cie.2022.108065
- [34] Omrani, H., Shafaat, K., & Emrouznejad, A. (2018). An integrated fuzzy clustering cooperative game data envelopment analysis model with application in hospital efficiency. Expert systems with applications, 114, 615-628. https://doi.org/10.1016/j.eswa.2018.07.074
- [35] Ebrahimnejad, A., & Amani, N. (2021). Fuzzy data envelopment analysis in the presence of undesirable outputs with ideal points. Complex & intelligent systems, 7(1), 379-400. https://doi.org/10.1007/s40747-020-00211-x