Cost Efficiency of Supply Chain in Fuzzy Environment

In conventional data envelopment analysis (DEA) models, the performance of decision making units (DMUs), which are usually treated as black boxes, is evaluated while all factors are assumed to be precise and crisp. Nevertheless, there are situations in the real world that the cost efficiency scores of supply chains should be evaluated whilst imprecise inputs and outputs are present. Therefore, an approach based on DEA is proposed in the current paper to evaluate the cost efficiency of supply chains and members when fuzzy inputs and outputs exist. To illustrate, the cost efficiency scores of the overall supply chain and each member of the supply chain are estimated in the fuzzy environment. A method based on ranking function is used to investigate fuzzy measures. A numerical example is used to illustrate the proposed approach.