Bi-level optimization based on fuzzy if-then rule

Abstract

A bi-level programming problem has been developed where the functional relationship linking decision variables and the objective functions of leader and follower are not utterly well known to us. Because of the uncertainty in practical life decision-making situation most of the time it is inconvenient to find the veracious relationship between the objective functions of leader, follower and the decision variables. It is expected that the source of information which gives some command about the objective functions of leader and follower, is composed by a block of fuzzy if-then rules. In order to analyze the model, A dynamic programming approach with a suitable fuzzy reasoning scheme is applied to calculate the deterministic functional relationship linking the decision variables and the objective functions of leader as well as follower. Thus a bi-level programming problem is constructed from the actual fuzzy rule-based to the conventional bi-level programming problem. To solve the final problem, we use the lingo software to find the optimal of objective function of follower first and using its solution we optimize the objective function of leader. A numerical example has been solved to signify the computational procedure.