Performance Evaluation by SBM DEA Model Under Fuzzy Environments Using Expected Credits

Abstract

Performance evaluation is always the interest of the manager in every sector like banks, supply chain management, etc. Data envelopment analysis (DEA) is an operations research methodology based on linear programming, which is used to evaluate the performance of decision-making units (DMUs). The available data in real-life scenarios may be present in the vague form. Therefore, the crisp DEA model cannot be used for efficiency evaluation. In the present study, the slacks based model (SBM) DEA model is integrated with the fuzzy set theory to overcome the problem. The expected credits approach is used to solve the fuzzy SBM DEA model in the proposed study. The relative efficiency of the Indian oil refineries is calculated using this methodology, and the rank of the companies is computed from their relative efficiency.