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.