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Cost Efficiency Measures with Trapezoidal Fuzzy Numbers in Data Envelopment Analysis Based on Ranking Functions: Application in Insurance Organization and Hospital

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  • Ali Ebrahimnejad

    (Department of Mathematics, Islamic Azad University–Qaemshahr Branch, Iran)

Abstract

Cost efficiency (CE) evaluates the ability to produce current outputs at minimal cost, given its input prices. In ordinary CE model, the input prices are assumed to be definite. In recent years, various attempts have been made to measuring CE when the input prices are as trapezoidal fuzzy numbers. The main contribution of this paper is to provide a new approach for generalizing the CE of decision making units in data envelopment analysis when the input prices are trapezoidal fuzzy numbers, where concepts of fuzzy linear programming problems and CE, are directly used. Here, the author used the linear ranking functions to compare fuzzy numbers. The proposed method is illustrated with two application examples and proves to be persuasive and acceptable in real world systems.

Suggested Citation

  • Ali Ebrahimnejad, 2012. "Cost Efficiency Measures with Trapezoidal Fuzzy Numbers in Data Envelopment Analysis Based on Ranking Functions: Application in Insurance Organization and Hospital," International Journal of Fuzzy System Applications (IJFSA), IGI Global, vol. 2(3), pages 51-68, July.
    • Handle: RePEc:igg:jfsa00:v:2:y:2012:i:3:p:51-68
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    Cited by:

    1. P. Senthil Kumar, 2016. "PSK Method for Solving Type-1 and Type-3 Fuzzy Transportation Problems," International Journal of Fuzzy System Applications (IJFSA), IGI Global, vol. 5(4), pages 121-146, October.
    2. Gözde YEŞİLAYDIN & Nesrin ALPTEKİN, 2016. "Bulanık Veri Zarflama Analizi İle OECD Ülkelerinin Sağlık Alanındaki Etkinliklerinin Değerlendirilmesi," Sosyoekonomi Journal, Sosyoekonomi Society, issue 24(30).
    3. Kaffash, Sepideh & Azizi, Roza & Huang, Ying & Zhu, Joe, 2020. "A survey of data envelopment analysis applications in the insurance industry 1993–2018," European Journal of Operational Research, Elsevier, vol. 284(3), pages 801-813.
    4. P. Senthil Kumar, 2018. "A note on 'a new approach for solving intuitionistic fuzzy transportation problem of type-2'," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 29(1), pages 102-129.

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