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Enumeration algorithms for FDH directional distance functions under different returns to scale assumptions

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Computing directional distance functions for a free disposal hull (FDH) technology in general requires solving nonlinear mixed integer programs. Cherchye et al. (J Product Anal 15(3):201–215, 2001) provide an enumeration… Click to show full abstract

Computing directional distance functions for a free disposal hull (FDH) technology in general requires solving nonlinear mixed integer programs. Cherchye et al. (J Product Anal 15(3):201–215, 2001) provide an enumeration algorithm for the FDH directional distance function in case of a variable returns to scale technology. In this contribution, we provide fast enumeration algorithms for the FDH directional distance functions under constant, nonincreasing, and nondecreasing returns to scale assumptions. Consequently, enumeration algorithms are now available for all commonly used returns to scale assumptions.

Keywords: directional distance; enumeration algorithms; fdh directional; returns scale; distance functions

Journal Title: Annals of Operations Research
Year Published: 2018

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