Data envelopment analysis with imprecise data: An application of TAIWAN machinery firms

Chiang Kao, Shiang Tai Liu

Research output: Contribution to journalArticlepeer-review

26 Citations (Scopus)

Abstract

Technology and management are two broad categories of factors that have major influence on the productivity of manufacturing firms. The ratio of the actual productivity of a firm to its maximal productivity is a measure of efficiency. Since the automation technology level and production management achievement of a firm cannot be measured precisely, a fuzzy data envelopment analysis (FDEA) model is applied to calculate the efficiency scores of a sample of machinery firms in Taiwan. Different from the conventional crisp DEA, the efficiency scores calculated from the FDEA model are fuzzy numbers, in that ranges of values at different possibility levels rather than a single crisp value are provided. When the observations are fuzzy in nature, the FDEA methodology avoids the top management from being over-confident with the results as opposed to that of using the conventional DEA methodology by simplifying the fuzzy observations to crisp values.

Original languageEnglish
Pages (from-to)225-240
Number of pages16
JournalInternational Journal of Uncertainty, Fuzziness and Knowlege-Based Systems
Volume13
Issue number2
DOIs
Publication statusPublished - 2005 Apr 1

All Science Journal Classification (ASJC) codes

  • Software
  • Control and Systems Engineering
  • Information Systems
  • Artificial Intelligence

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