Capacitated bilevel time minimizing transportation problem (CBTMTP) is a generalization of bilevel time minimizing transportation problem (BTMTP). Because of route shipping capacity realistic finiteness, CBTMTP is an optimization problem of crucial importance in logistics and emergency and project management. In the literature, no research report on CBTMTP is available due to its intractability, with exception of one BTMTP solving approach with defects of difficult computer implementation and difficult extension and inability used directly for efficiently solving CBTMTP. In this paper, by creating CBTMTP’s mathematical model along with auxiliary models and constructing network to make sufficient exploitation of CBTMTP’s network flow structure, two algorithms with one as exact optimum algorithm called CBTMTP-OA while another as heuristic algorithm called CBTMTP-HA are developed to solve CBTMTP efficiently. It is proved that CBTMTP-OA finds CBTMTP’s optimum solution by calling a polynomial time algorithm for a finite number of times, but CBTMTP-HA finds CBTMTP’s near optimum even exact optimum solution in a polynomial computation time. Computation study comprising distinct tests is conducted to verify the practical performance of CBTMTP-OA and CBTMTP-HA. It is revealed that CBTMTP-OA is capable of solving small and medium size instances efficiently, and inapplicable to solving large size instances because of too time consuming and memory overflow. But CBTMTP-HA is always capable of finding CBTMTP’s near optimum even exact optimum solution in high efficiency, and especially applicable to solving large size instances, with significant superiority to extant BTMTP solving approach. Both algorithms can serve as powerful tool for solving other relevant complicated optimization problems.
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