Cross-Efficiency Aggregation by OWA Operator Weights with Fuzzy Data

Abstract

Cross-efficiency evaluation is an effective way of ranking decision-making units (DMUs) in data envelopment analysis (DEA) and can be performed with different formulations (aggressive or benevolent), secondary goals and models. In this paper we use neutral formulation for cross-efficiency aggregation. The neutral formulation determines one set of input and output weights for each DMU from its own point of view without being aggressive or benevolent to the other DMUs. Existing approaches for cross-efficiency evaluation are mainly focused on the calculation of cross-efficiency matrix, but pay little attention to the aggregation of the efficiencies in the cross-efficiency matrix. This paper focuses on the use of ordered weighted averaging (OWA) operator weights for cross-efficiency aggregation. The use of OWA operator weights allows the decision maker (DM)’s optimism level towards the best relative efficiencies. But in real world, we are often conformed to ambiguous and uncertain data. So, there is an undeniable need for fuzzy logic to evaluate the efficiency unit.