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Performance evaluation: An integrated method using data envelopment analysis and fuzzy preference relations

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  • Wu, Desheng Dash

Abstract

In a multi-attribute decision-making (MADM) context, the decision maker needs to provide his preferences over a set of decision alternatives and constructs a preference relation and then use the derived priority vector of the preference to rank various alternatives. This paper proposes an integrated approach to rate decision alternatives using data envelopment analysis and preference relations. This proposed approach includes three stages. First, pairwise efficiency scores are computed using two DEA models: the CCR model and the proposed cross-evaluation DEA model. Second, the pairwise efficiency scores are then utilized to construct the fuzzy preference relation and the consistent fuzzy preference relation. Third, by use of the row wise summation technique, we yield a priority vector, which is used for ranking decision-making units (DMUs). For the case of a single output and a single input, the preference relation can be directly obtained from the original sample data. The proposed approach is validated by two numerical examples.

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  • Wu, Desheng Dash, 2009. "Performance evaluation: An integrated method using data envelopment analysis and fuzzy preference relations," European Journal of Operational Research, Elsevier, vol. 194(1), pages 227-235, April.
    • Handle: RePEc:eee:ejores:v:194:y:2009:i:1:p:227-235
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    Cited by:

    1. Kefan, Xie & Gang, Chen & Wu, Desheng Dash & Luo, Cuicui & Qian, Wu, 2011. "Entrepreneurial team's risk-based decision-making: A dynamic game analysis," International Journal of Production Economics, Elsevier, vol. 134(1), pages 78-86, November.
    2. Yong Zha & Liang Liang, 2015. "Aggregated Ratio Analysis in DEA," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 14(06), pages 1285-1297, November.
    3. Tsaples, G. & Papathanasiou, J., 2021. "Data envelopment analysis and the concept of sustainability: A review and analysis of the literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    4. Wu, Desheng (Dash) & Lee, Chi-Guhn, 2010. "Stochastic DEA with ordinal data applied to a multi-attribute pricing problem," European Journal of Operational Research, Elsevier, vol. 207(3), pages 1679-1688, December.
    5. Jie Wu & Liang Liang, 2012. "A multiple criteria ranking method based on game cross-evaluation approach," Annals of Operations Research, Springer, vol. 197(1), pages 191-200, August.
    6. Ferreira, Kevin D. & Wu, Desheng Dash, 2011. "An integrated product planning model for pricing and bundle selection using Markov decision processes and data envelope analysis," International Journal of Production Economics, Elsevier, vol. 134(1), pages 95-107, November.
    7. Jinpei Liu & Mengdi Fang & Feifei Jin & Chengsong Wu & Huayou Chen, 2020. "Multi-Attribute Decision Making Based on Stochastic DEA Cross-Efficiency with Ordinal Variable and Its Application to Evaluation of Banks’ Sustainable Development," Sustainability, MDPI, vol. 12(6), pages 1-15, March.
    8. Dariush Akbarian, 2015. "Ranking All DEA-Efficient DMUs Based on Cross Efficiency and Analytic Hierarchy Process Methods," Journal of Optimization, Hindawi, vol. 2015, pages 1-10, January.
    9. Ebrahimi, Bohlool & Dhamotharan, Lalitha & Ghasemi, Mohammad Reza & Charles, Vincent, 2022. "A cross-inefficiency approach based on the deviation variables framework," Omega, Elsevier, vol. 111(C).
    10. Peng Wu & Jinpei Liu & Ligang Zhou & Huayou Chen, 2022. "An Integrated Group Decision-Making Method with Hesitant Qualitative Information Based on DEA Cross-Efficiency and Priority Aggregation for Evaluating Factors Affecting a Resilient City," Group Decision and Negotiation, Springer, vol. 31(2), pages 293-316, April.
    11. Desheng Wu & Zhaoxin Zhou & John Birge, 2011. "Estimation of potential gains from mergers in multiple periods: a comparison of stochastic frontier analysis and Data Envelopment Analysis," Annals of Operations Research, Springer, vol. 186(1), pages 357-381, June.
    12. Xu, Jiuping & Li, Bin & Wu, Desheng, 2009. "Rough data envelopment analysis and its application to supply chain performance evaluation," International Journal of Production Economics, Elsevier, vol. 122(2), pages 628-638, December.
    13. Wu, Desheng Dash & Zhang, Yidong & Wu, Dexiang & Olson, David L., 2010. "Fuzzy multi-objective programming for supplier selection and risk modeling: A possibility approach," European Journal of Operational Research, Elsevier, vol. 200(3), pages 774-787, February.
    14. Wang, Ying-Ming & Chin, Kwai-Sang, 2010. "Some alternative models for DEA cross-efficiency evaluation," International Journal of Production Economics, Elsevier, vol. 128(1), pages 332-338, November.
    15. Feng Yang & Dexiang Wu & Liang Liang & Gongbing Bi & Desheng Wu, 2011. "Supply chain DEA: production possibility set and performance evaluation model," Annals of Operations Research, Springer, vol. 185(1), pages 195-211, May.
    16. H. Örkcü & Mehmet Ünsal & Hasan Bal, 2015. "A modification of a mixed integer linear programming (MILP) model to avoid the computational complexity," Annals of Operations Research, Springer, vol. 235(1), pages 599-623, December.
    17. Kuzu, Kaan & Li, Wanxi, 2016. "Exploring supplier performance risk and the buyer's role using chance-constrained data envelopment analysisAuthor-Name: Ross, Anthony D," European Journal of Operational Research, Elsevier, vol. 250(3), pages 966-978.
    18. Wang, Ying-Ming & Chin, Kwai-Sang, 2011. "The use of OWA operator weights for cross-efficiency aggregation," Omega, Elsevier, vol. 39(5), pages 493-503, October.
    19. Wenjun Chang & Chao Fu & Nanping Feng & Shanlin Yang, 2021. "Multi-criteria Group Decision Making with Various Ordinal Assessments," Group Decision and Negotiation, Springer, vol. 30(6), pages 1285-1314, December.
    20. Jiuping Xu & Xiaoyang Zhou & Desheng Wu, 2011. "Portfolio selection using λ mean and hybrid entropy," Annals of Operations Research, Springer, vol. 185(1), pages 213-229, May.
    21. Soltanifar, Mehdi & Shahghobadi, Saeid, 2013. "Selecting a benevolent secondary goal model in data envelopment analysis cross-efficiency evaluation by a voting model," Socio-Economic Planning Sciences, Elsevier, vol. 47(1), pages 65-74.
    22. Wu, Desheng Dash, 2010. "BiLevel programming Data Envelopment Analysis with constrained resource," European Journal of Operational Research, Elsevier, vol. 207(2), pages 856-864, December.

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