Effect of the Algorithm
SSM provides 2 algorithms for selecting portfolios. Annealing is slower but tends to find more efficient solutions, while the Greedy heuristic is faster but less efficient. This slide shows the difference between solutions by the 2 algorithms. Simulated annealing is in green; greedy in red (boundary modifier = 0.2 in both cases). Greedy does less well at clustering because it can not drop an isolated planning unit once it has been selected.