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Socio-economic systems optimization

Оптимизационное моделирование сложных социально-экономических систем
The scientific school “Systems optimization and modeling” works on the basis of the department of Computer-aided Management Systems. The purpose of our scientific activity and practical applications consist in development of theory, methods and software for efficiency analysis and performance evaluation of socio-economic systems (region, company, bank, college, hospital etc).
Efficiency evaluation is a basic indicator of management activity under market conditions. An experienced manager can intuitively perceive whether his/her production unit is efficient or not. However, it is impossible at present to find efficiency score of his/her production unit’s functioning, moreover to determine optimal paths of increasing the efficiency score, without using computer modeling.
The Data Envelopment Analysis (DEA) originated as a generalization of simple efficiency ratios over multidimensional case, in other words, when an activity of production units is described by a number of input and output indicators. A set of homogeneous production units is considered in order to make the formulation of this problem correct and intentional. As a result this approach is reduced to the solution of a large family of optimization problems.
The founders of the DEA approach were famous scientists A.Charnes, W.Cooper, E.Rhodes, R.Banker and some others. At present the number of publications on this approach makes up several thousands units in the international scientific journals, see, for example, the website The ideas contained in the DEA approach have turned out to be much more seminal and far-reaching than the simple computation of efficiency score of complex systems. The DEA approach has close links with the neoclassical theoretical economics, systems analysis, and multicriteria optimization. This approach allows one to analyze the behavior of complex systems in the multidimensional space, to find optimal paths of development in it, to model various scenarios.
Outstanding scientists (M.Farrell, R.Frish, P.Shepard among others) in the field of economics and operations research wrote about the possibility of visualization of the multidimensional socio-economic space many years ago. Some of them became the Noble Prize winners afterwards. Visualization methods of the multidimensional space play an important role for investigation of complex unit’s behavior.
Our scientific team succeeded in elaboration of visualization methods for multidimensional sets with the help of construction of sections of these sets by affine subsets.
From the scientific point of view, the construction of sections of multidimensional sets enables one to investigate complex objects by direct methods. Since indirect methods are used for computations of indicators of complex objects activity in the world practice so far.
From practical points of view, the visualization of multidimensional sets increases significantly intuition and creative possibilities of decision making persons. Indeed, at present none of the builders will start the construction without the complete set of drawings, none of the captain will start the navigation without the complete set of maps, and the modern applied physics is impossible without electronic microscope. And only leaders of complex objects have to make decisions relying often on tables, standard graphics and diagrams.
Our scientific team has published on this approach more than 70 papers in the leading international journals, made over 20 presentations at the international conferences. Methods and software elaborated by our team are used in the work of the Accounts Chamber of the Russian Federation, in the Central Bank of the Russian Federation, in a number of municipal and business units.

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Director of the College of Information Technologies and Automatic Control System, Professor

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