Uncertain Free Disposal Hull Model with Application to Chinese Banks

As an alternative model to the data envelopment analysis (DEA), the free disposal hull (FDH) model has excellent performance in measuring decision making unit (DMU) efficiency under the condition that the production possibilities do not satisfy the convexity assumption. However, in actual production and life, many data are difficult to collect and cannot obtain accurate values, such as carbon dioxide emissions. In the case of imprecise data, the FDH model cannot evaluate the efficiency of DMU. In this context, a new uncertain FDH model based on uncertainty theory is proposed. In this paper, the uncertain FDH model is solved precisely by means of the uncertain chance constraint method and the expected value method. Finally, an application example of measuring the efficiency of 30 banks in China in 2019 is given to documenting the feasibility of the proposed model.

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Publication Details

Journal
International Journal of Uncertainty Fuzziness and Knowledge-Based Systems
Published
2025-08-30
DOI
https://doi.org/10.1142/s0218488525500230
Primary Topic
Efficiency Analysis Using DEA
Type
article
Field-Weighted Citation Impact
0.00

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article

Uncertain Free Disposal Hull Model with Application to Chinese Banks

Yuhong Sheng, Wenxuan Xie, Jiali Wu
International Journal of Uncertainty Fuzziness and Knowledge-Based Systems
Efficiency Analysis Using DEA
article

Uncertain Free Disposal Hull Model with Application to Chinese Banks

Yuhong Sheng, Wenxuan Xie, Jiali Wu
article en

Abstract

As an alternative model to the data envelopment analysis (DEA), the free disposal hull (FDH) model has excellent performance in measuring decision making unit (DMU) efficiency under the condition that the production possibilities do not satisfy the convexity assumption. However, in actual production and life, many data are difficult to collect and cannot obtain accurate values, such as carbon dioxide emissions. In the case of imprecise data, the FDH model cannot evaluate the efficiency of DMU. In this context, a new uncertain FDH model based on uncertainty theory is proposed. In this paper, the uncertain FDH model is solved precisely by means of the uncertain chance constraint method and the expected value method. Finally, an application example of measuring the efficiency of 30 banks in China in 2019 is given to documenting the feasibility of the proposed model.

International Journal of Uncertainty Fuzziness and Knowledge-Based SystemsVol. 33(06)
Xinjiang University (CN)
National Natural Science Foundation of China
Openalex Percentile: Top 73%
Efficiency Analysis Using DEA
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