Cost Efficiency of Supply Chain in Fuzzy Environment

In conventional data envelopment analysis (DEA) models, the performance of decisionmaking units (DMUs), which are usually treated as black boxes, is evaluated while all factors areassumed to be precise and crisp. Nevertheless, there are situations in the real world that the costefficiency scores of supply chains should be evaluated whilst imprecise inputs and outputs arepresent. Therefore, an approach based on DEA is proposed in the current paper to evaluate the costefficiency of supply chains and members when fuzzy inputs and outputs exist. To illustrate, the costefficiency scores of the overall supply chain and each member of the supply chain are estimated inthe fuzzy environment. A method based on ranking function is used to investigate fuzzy measures.A numerical example is used to illustrate the proposed approach.

Keywords:

Data envelopment analysis (DEA) , Cost efficiency , Supply chain , Fuzzy data