A Novel Pythagorean Approach Based Sine-Shaped Fuzzy Data Envelopment Analysis Model: An Assessment of Indian Public Sector Banks

Fuzzy Data Envelopment Analysis is a modeling technique that efficiently ranks decision-making units (DMUs) based on imprecise inputs and outputs. The method constructs an efficient frontier line that separates efficient and inefficient DMUs. The goal is to improve the efficiency score of each inefficient DMU by moving them to the efficient frontier. In this study, we introduce a new approach, called the Pythagorean approach, which considers both the input and the output aspects. The approach is applied to the CCR model, and a new version of the BCC model is introduced, known as the Pythagorean approach-based BCC model. To handle the vagueness of the data set, the Pythagorean approach-based BCC model is extended to a fuzzy environment using a new type of fuzzy number called a sine-shaped fuzzy number. Finally, the efficacy of the model is tested in Indian public sector banks.