When standard model selection methods are applied to DSDs, they can fail to identify active effects. See Errore et al. (2017). Also, standard selection methods do not leverage the structure of DSDs. The Fit Definitive Screening platform uses the Effective Model Selection for DSDs approach, which takes full advantage of the structure of the DSD.
Jones and Nachtsheim (2016) report on simulation studies using Effect Model Selection for DSDs as well as standard approaches. Denote by c the sum of the number of factors and the number of fake factors in a DSD. In many situations, if the number of active main effects exceeds three, then up to c/2 active second-order effects can be reliably identified. Assuming strong effect heredity, if there are three or fewer active main effects, then all active second-order effects can be reliably identified. Reliable identification means that the ratio of the absolute value of the coefficient to the error standard deviation exceeds three and that the power to detect the effect exceeds 0.80.
The Fit Definitive Screening platform default settings assume strong effect heredity. Strong effect heredity means that the A*B interaction can only be considered for inclusion in the model if both A and B have been included. Strong effect heredity requires that all lower-order components of a model effect be included in the model. In identifying active second-order effects, the algorithm uses strong effect heredity and the results cited earlier about how many active second-order effects can be reliably identified.
In a DSD, main effects and second-order effects are orthogonal to each other. The Effective Model Selection for DSDs approach takes advantage of this fact. The linear space of the response is separated into the subspace spanned by the main effects and the orthogonal complement of this subspace. Miller and Sitter (2005) refer to the linear subspace spanned by the main effects as the odd space, because it contains all the information about odd effects: main effects, 3-factor effects, 5-factors effects, and so on. They refer to its orthogonal complement as the even space, because it contains all the information about even effects: the intercept, 2-factor effects, 4-factor effects, and so on.
Fit Definitive Screening follows this thinking. The subspace spanned by the main effects is the odd space. Its orthogonal complement, the even space, contains the second-order effects and the block variable, if one exists. For more information about the algorithm, see The Effective Model Selection for DSDs Algorithm and Jones and Nachtsheim (2016).