Construction of Three-Dimensional Sections of the Efficient Frontier for Non-convex Models

Abstract

Non-convex Free Disposal Hull (FDH) model was proposed in the scientific literature at the end of the 20th century for performance measurement of complex multidimensional production units. FDH model was proposed almost simultaneously with the DEA (Data Envelopment Analysis) model. However, as distinct from the DEA models, production possibility set of FDH models are non-convex ones, which significantly refrained the development of these models. As far as we know, the necessity for such an approach has been noted in the world scientific literature for a long time. In this paper, an approach is proposed for three-dimensional visualization of FDH models. An approach was tested using real-life data sets from different areas. Computational experiments confirm reliability and effectiveness of the proposed approach.