A comprehensive fuzzy cost efficiency DEA model for considering discount in market

Data Envelopment Analysis (DEA) is a widely used mathematical programming technique usually considered for productivity assessment. An important issue in productivity assessment is cost efficiency evaluation. This concept makes a connection between cost and outcomes and shows the rate of return which is important for managers to make better decisions. Classical models for costefficiency assessment needs accurate values of inputs and outputs data as well as the input prices which is not the case in real-life examples. An important concept which is taken into consideration in this study is considering discount while buying a product. Discounts usually depend on the amount of the purchased product. Here, considering fuzzy concept a comprehensive fuzzy cost efficiency model is presented to evaluate Decision Making Units (DMUs) while discounts are also taken into consideration. In this circumstances according to the amount of the purchased product the price is specified. For more clarity, a real-life case study in the insurance is considered for demonstrating the applicability of the presented model.

Keywords:

Data Envelopment Analysis , Cost Efficiency , Fuzzy , Imprecise Data