Stochastic FDH Model with various returns to scales

Free Disposal Hull (FDH) is one of the tools in the theoretical and empirical work on the measurement of productive efficiency. Data envelopment analysis (DEA) is a data-oriented performance evaluation method which has treated data as being deterministic. In real world applications sometimes managers may encounter with data which are not recognized deterministic and they have the essence of stochastic. In this paper a stochastic FDH model with various kinds of return to scale (RTS), including variable, non-increasing, non-decreasing, and constant return to scale (VRS, NIRS, NDRS and CRS respectively) have been presented for efficient Decision Making Units (DMUs) with stochastic data. This model is based on LP FDH model