A branch and bound algorithm for solving a class of D-C programming

The D-C (difference of convex functions) programming occurs very often in economic and financial field. In this paper, a class of D-C programming problems is studied. The objective function is the sum of a convex quadratic function and a separable concave function, the constraint is the intersection of a polytope and a rectangle. A branch and bound algorithm is given for solving it. We compare the largest distance bisection with α-subdivision in branch and bound algorithm. Numerical tests on different dimensions showed that the proposed branch and bound algorithm is efficient for solving medium-scale problems, and the efficiency of the largest distance bisection and α-subdivision is nearly the same.