Efficiency assessment of Indian paper mills through fuzzy DEA

ABSTRACT

The present study proposes a Fuzzy Data Envelopment Analysis (FDEA) approach for analyzing the performance of 8 selected paper mills of India. The proposed approach named FDEA considers the use of fuzzy weights in the objective function and makes use of alpha cut to decide the fuzzy interval. The efficiency of paper mills is evaluated based on 3 input parameters (raw material, energy consumption, and water consumption) and 4 output parameters (paper production, Biochemical Oxygen Demand (BOD), Chemical Oxygen Demand (COD) and Greenhouse Gas (GHG) emissions). Further, this paper also analyzes the effect of negative outputs, like BOD, COD, and GHG on the efficiency of paper mills. The study indicates that FDEA can be used efficiently for evaluating the performance of a particular sector under similar conditions.

KEYWORDS:

• Data
• envelopment
• analysis
• fuzzy
• DEA
• weights
• papermill
• efficiency