• ISSN: 2010-023X (Print)
    • Abbreviated Title: Int. J. Trade, Economics and Financ.
    • Frequency: Bimonthly
    • DOI: 10.18178/IJTEF
    • Editor-in-Chief: Prof.Tung-Zong (Donald) Chang
    • Executive Editor: Ms. Cherry L. Chen
    • Abstracting/ Indexing:  ProQuest, Crossref, Electronic Journals Library , EBSCO, and Ulrich's Periodicals Directory
    • E-mail: ijtef@ejournal.net
IJTEF 2020 Vol.11(4): 65-70 ISSN: 2010-023X
DOI: 10.18178/ijtef.2020.11.4.668

Efficiency Measurement for Non-homogeneous Units in a Fuzzy Environment

W.-C. Yeh, C.-K. Hu, F.-B. Liu, and C.-F. Hu
Abstract—Data envelopment analysis (DEA) assumes homogeneity among the decision-making units (DMUs) for measuring the relative efficiency of DMUs. In actual practice the efficiency scores generated by DEA may reflect the underlying differences in environments rather than true operational efficiency when DMUs do not operate under similar conditions. This work considers measuring the relative efficiency of non-homogeneous DMUs in a fuzzy environment. A two-stage analysis incorporating imprecise environmental factors into DEA model for measuring the relative efficiency of non-homogeneous units is proposed. A fuzzy regression analysis is employed for adjusting the data of DMUs to account for variations in the fuzzy causes of non-homogeneity. DEA with fuzzy residual errors is then performed to construct a scalar measure of efficiency for all DMUs. An example of the performance assessment of municipalities' solid waste recycling and disposal channels is included. This is the first attempt to estimate the relative efficiency for non-homogeneous DMUs in a fuzzy environment.

Index Terms—Data envelopment analysis, fuzzy optimization, non-homogeneous, fuzzy regression.

W.-C. Yeh is with the Department of IEEM, National Tsing Hua University, Hsinchu, Taiwan (e-mail: yeh@ieee.org).
C. K. Hu is with the Department of International Business, Kao Yuan University, Kaohsiung, Taiwan (e-mail: t80147@cc.kyu.edu.tw).
F.-B. Liu is with the Department of Mechanical and Automation Engineering, I-Shou University, Kaohsiung, Taiwan (e-mail: fliu@isu.edu.tw).
C-. F. Hu is with the Department of Applied Mathematics, National Chiayi University, Chiayi, Taiwan (Corresponding author; e-mail: cfhu@mail.ncyu.edu.tw).

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Cite: W.-C. Yeh, C.-K. Hu, F.-B. Liu, and C.-F. Hu, "Efficiency Measurement for Non-homogeneous Units in a Fuzzy Environment," International Journal of Trade, Economics and Finance vol.11, no.4, pp. 65-70, 2020.

Copyright © 2020 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

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