Application of discrete bilevel programming to some applied problems
Stephan Dempe, Vitaly V. Kalashnikov, Hugo Terashima‐Marín · 2004
In this paper, we present a mathematical framework for the problem of minimization of the cash-out penalties of a natural gas shipper. The problem is modeled as a mixed-integer bilevel programming problem. To solve it efficiently, we re-formulate it as a standard mathematical programming problem making use of an exact penalty function approach, and describe a branch-and-bound algorithm for its solution.