Methods · Efficiency
HFPEA (Hesitant Fuzzy Preference-Constrained Envelopment Analysis)
HFPEA bounds the free-weighting latitude that HFEA gives each option in its own favour, computing efficiency under weights that also honour a priority order the decision-maker has stated among the criteria.
Base method's data type: Hesitant
What Is the Method?
HFPEA is an extension of HFEA (Hesitant Fuzzy Envelopment Analysis). HFEA allows every option to choose entirely free weights in its own favour; this can sometimes lead to unrealistic results, because an option can appear artificially efficient simply by loading all its weight onto a criterion the decision-maker considers unimportant. HFPEA adds, as a constraint on the weights, a priority order the decision-maker has stated in the form "this criterion is more important than that one"; the efficiency calculation thereby both preserves the idea of self-favouring evaluation and stays tied to the decision-maker's actual priorities. Zhou, Chen, Xu and Meng proposed it in 2018 as HFEA strengthened with preference information.
The Philosophy Behind It
HFEA's principle of "evaluate everyone in their own favour" is sometimes too generous: if an option is strong on a criterion the decision-maker regards as unimportant, it can load all its weight onto that criterion and still reach the efficient frontier. HFPEA bounds this latitude. A ranking is obtained from the decision-maker among the criteria (for instance, "growth prospects matter more than market share; market share matters more than team quality"), and this ranking is turned into constraints fixing the relative order of magnitude among the weights. An option can no longer assign more weight to an unimportant criterion than to the others.
This idea carries a philosophical consequence: it carries fair evaluation and the decision-maker's value judgement together. HFEA looks only at the data; HFPEA also factors in the answer to "which criterion is more important." This means an option that looks efficient under HFEA can turn out inefficient once the priority order is added, because the criterion on which that option is strong may rank low in the decision-maker's priorities.
How It Works
The method proceeds through six steps; the last is optional.
First, gathering the hesitant assessments. As in HFEA, every option's value on each criterion is combined into a single hesitant set.
Second, computing score and deviation. As in HFEA, the mean (score) and inconsistency (deviation) of the set on each criterion are computed for every option.
Third, converting the priority order into a constraint. The decision-maker's stated ranking, of the form "this criterion is more important than that one," is turned into inequalities fixing the relative order of magnitude among the weights of successive criterion pairs.
Fourth, forming the constrained efficiency ratio. The same efficiency ratio as in HFEA (the ratio of the weighted sum of scores to the weighted sum of deviations) is formed, but this time the priority-order constraints are added as well.
Fifth, solving and classifying. For every option, the weights that maximise the efficiency ratio under the priority constraints are found; options scoring 1 are considered efficient under this priority order, those below 1 inefficient, and all are ranked.
Sixth (optional), a priority-sensitive improvement target. For an option found inefficient, the change in score and deviation needed to reach the efficient frontier while preserving the priority order can be computed.
The formulas behind each step, the intermediate tables and the citation formats are given on the DecisionMind method page; this card carries no formulas.
How to Read the Output
The efficiency score lies between 0 and 1, as in HFEA, but now shows the highest efficiency attainable "under weights most favourable to the option itself, while also respecting the decision-maker's priority order." An option that appeared on the efficient frontier under HFEA can come out inefficient once priority constraints are added; this is not an error, it shows that the criterion on which the option was strong ranks low in the decision-maker's priorities. The score is valid only for this priority order and this option set; if the priority order changes, the set of efficient options changes too.
Thus instead of writing:
"HFPEA found the most efficient option objectively"
the report should read:
"Under this priority order, the following options are efficient; if the priority order changes, the set of efficient options changes too"
Data Type and Inputs
HFPEA uses the same hesitant data structure as HFEA: every option's value on each criterion is a set of several possible values. DecisionMind holds no extension of this method; the base method works on its own. The method does not ask for numerical weights from outside, but it does require an ordinal priority among the criteria (which is more important than which); it works with information no more detailed than "this matters more than that," without producing full numerical weights of the kind AHP or SWARA would. Requiring all criteria to be included in the priority order can render the problem infeasible in small data sets; in that case, only part of the ordering (a partial ranking) can be used.
When to Use It, When Not To
HFPEA is appropriate if, having applied HFEA, you feel the result does not reflect the decision-maker's real priority order among the criteria, or if you already have such a priority order from the outset. If you have no priority judgement among the criteria, or wish to treat them all as equally important, HFEA is sufficient; moving to HFPEA adds an unnecessary constraint. If your priority order is already clear in the form of numerical weights (for instance, derived from AHP), it may be more direct to move to classical weighted methods (such as TOPSIS) that use those weights directly.
A priority order exists among the criteria, and efficiency should reflect it → HFPEA
No priority among the criteria, all can be treated equally → HFEA
Priority already known as full numerical weights → weighted ranking methods (TOPSIS, VIKOR)
Distinction among options on the efficient frontier needed through peer evaluation → HFPE
Strengths
HFPEA's greatest strength is that it preserves HFEA's objective flexibility while also taking the decision-maker's value judgement into account; this offers a middle path between a purely data-driven result and a purely subjective weighting. It prevents an option from appearing artificially efficient by over-weighting an unimportant criterion. By showing which options' efficiency position changes once the priority order is added, it makes clear, in which direction, the decision-maker's priorities affect the result.
Weaknesses
HFPEA's fundamental limitation is that it requires a full ranking over all the criteria; in small data sets this can render the problem infeasible, in which case a partial ranking must be used instead. A second limitation is the assumption that the priority order is stable; if the ranking changes, so does the set of efficient options, so the result is valid only for that particular ranking. Third, HFPEA's improvement targets differ from HFEA's, because the feasible region under priority constraints is smaller; conflating the two produces the wrong improvement advice. Fourth, the priority order itself usually rests on the view of a limited number of decision-makers; a different decision-maker might propose a different order, and this is a general limitation of preference-constrained methods (Zhu, 1996).
Common Mistakes
The most common mistake is interpreting an option that was efficient under HFEA but comes out inefficient under HFPEA as "the method made an error"; this is a correct result showing that the priority constraints have pushed back the criterion on which the option was strong. A second mistake is assuming that changing the priority order will not change the result; the ordering is an input to the analysis, and the result changes when it does. A third mistake is assuming HFPEA's improvement targets are the same as HFEA's and copying them directly; the targets under priority constraints are calculated differently. The governing principle is this:
An HFPEA result reflects the decision-maker's priority order in addition to the data; if the priority order is contested, the efficiency result is contested too.
Cases
Each case opens with a decision table, describes in words what the method does to it, and shows how to read the priority-constrained efficiency score. The first case is drawn from the method's founding source. The remaining cases are illustrative constructions.
1. Business: Efficiency of the same four companies changing once a priority order is added (Zhou, Chen, Xu and Meng, 2018)
The same four companies (y1, y2, y3, y4) and the same four criteria (market share, team quality, growth prospects, technology fit) from the HFEA card are revisited here. This time, however, the investment board has stated a priority order: growth prospects is the most important criterion, followed by market share, then team quality, with technology fit the least important.
The method turns this priority order into a magnitude constraint among the weights: the weight on growth prospects must be greater than or equal to the weight on market share, the weight on market share greater than or equal to the weight on team quality, and the weight on team quality greater than or equal to the weight on technology fit. The efficiency ratio is then maximised under this constraint.
| Company | HFEA efficiency score (no priority) | HFPEA efficiency score (with priority) | Class (HFPEA) |
|---|---|---|---|
| y3 | 1.000 | 1.000 | Efficient |
| y2 | 1.000 | 0.882 | Inefficient |
| y1 | 0.875 | 0.782 | Inefficient |
| y4 | 0.875 | 0.769 | Inefficient |
The result reads as follows. Under HFEA, y2 and y3 were together on the efficient frontier. Once the priority order is added, only y3 remains efficient; y2 moves away from the efficient frontier (falling from 1.000 to 0.882), because the criterion on which y2 is strong (technology fit) ranks lowest in the board's priorities. y1 and y4's scores also fall, but their relative positions are preserved.
The board hesitates here: y2 was equally good as y3 under HFEA; falling behind once the priority order is added does not mean y2 is a poor company, it means the importance the board places on growth prospects does not align with y2's profile. The board should also question separately whether the priority it gave to growth prospects is correct.
In the report: "With the priority order growth prospects, market share, team quality and technology fit, only y3 is on the efficient frontier; y2, which was tied with y3 in the priority-free analysis, falls behind under this priority order."
Source: Zhou, Chen, Xu and Meng (2018); the figures are taken from Table 4.7, Chapter 4, of Zhou and Xu's (2020) book. The efficiency scores were recomputed with the DecisionMind engine (using a linear programming solver) while preparing this card and matched the record in the manifest (the kernel's golden test, tolerance 0.005); a small rounding difference and one crossed label were noted in the manifest as present in the book's printed table, but the ranking ([y3, y2, y1, y4]) matches exactly.
2. Tourism: Priority-ranked efficiency evaluation of hotels
A tourism-industry association will compare three hotels on guest satisfaction, occupancy rate, revenue per employee and a sustainability score. Auditors have given more than one score for each criterion. The association has set the priority as follows: guest satisfaction is most important, followed by the sustainability score, then occupancy rate, with revenue per employee least important.
Under HFEA, two hotels came out on the efficient frontier; once this priority order is added, the method is run again. Suppose one hotel, which was second in the priority-free analysis, rises to first place in the priority-ranked analysis because it is strong on guest satisfaction.
The association hesitates here: the hotel that is strong on revenue per employee but weak on guest satisfaction falls behind once the priority order is added; this hotel's management may object to profitability being treated as a low priority. The report should explain whether the priority order was set by the association's members collectively or by management alone.
In the report: "With the priority order guest satisfaction, sustainability, occupancy and revenue, one hotel is on the efficient frontier; this hotel was second in the priority-free analysis and rose to first once priority was added."
3. Telecoms: Priority-ranked efficiency evaluation of base-station regions
A telecom operator will compare network performance across four regions on the inverse of call-drop rate, data speed, the inverse of fault-repair time, and the inverse of the customer-complaint rate. The company has set the priority as follows: data speed is the most important criterion, because competition is thought to centre most on this measure, followed by call-drop rate.
Under HFEA, three regions came out on the efficient frontier; once the priority order is added, only the region strong on data speed remains efficient. The company hesitates here: the high priority given to data speed may systematically disadvantage regions that are better on call quality but weaker on data speed; whether this priority aligns with the company's overall strategy should be assessed separately.
In the report: "With the priority of data speed and call-drop rate, only one region is on the efficient frontier; whether the result changes if the priority is shifted from data speed to call quality should be tested separately."
4. What Not to Do
Three concrete errors, seen against the table in Case 1, are as follows. The first is seeing y2 score 1.000 under HFEA and 0.882 under HFPEA and interpreting this as "the engine is behaving inconsistently"; this is the expected and correct effect of the priority constraint, not an inconsistency. The second is reporting the HFPEA result simply as "efficiency score" without ever stating the priority order used; this score cannot be interpreted without knowing which priority order was applied. The third is using HFEA's improvement targets (for y1 and y4) directly in HFPEA as though they still applied; improvement targets under priority constraints are calculated differently.
Sources
For the formulas behind each step, the intermediate tables and citation formats, see the DecisionMind method page: decisionmind.app/library/hfpea
Zhou, W., Chen, J., Xu, Z. S., & Meng, S. (2018). Hesitant fuzzy preference envelopment analysis and alternative improvement. Information Sciences, 465, 105–117. DOI: 10.1016/j.ins.2018.07.002
Zhou, W., & Xu, Z. (2020). Qualitative Investment Decision-Making Methods under Hesitant Fuzzy Environments. Studies in Fuzziness and Soft Computing, Vol. 376. Springer, Cham. DOI: 10.1007/978-3-030-11349-0
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European Journal of Operational Research, 2(6), 429–444. DOI: 10.1016/0377-2217(78)90138-8
Zhu, J. (1996). Data envelopment analysis with preference structure. Journal of the Operational Research Society, 47(1), 136–150. DOI: 10.1057/jors.1996.12