Frontier visualization for nonconvex models with the use of purposeful enumeration methods

Abstract

Free Disposal Hull (FDH) model was proposed in the end of 20-th century for performance measurement and management of complex units. Production possibility set of FDH model is a nonconvex set. For this reason, nonlinear integer programming methods and enumeration methods have been used for computations of various characteristics of units’ performance. However, as Cesaroni, Kerstens and Van de Woestyne noted, there are no methods in the world scientific literature for frontier visualization in nonconvex FDH models. In this paper, an approach is proposed for frontier visualization with the use of methods of purposeful enumeration. Computational experiments, conducted with the use of real-life data sets, confirm reliability and effectiveness of proposed algorithms.