American Institute of Mathematical Sciences

Advanced
July  2005, 1(3): 305-314. doi: 10.3934/jimo.2005.1.305

Decision making of transportation plan, a bilevel transportation problem approach

G.S. Liu 1, and  J.Z. Zhang 2,

1. 

Renmin University of China, Beijing 100872, China
2. 

Corresponding author. Department of Mathematics, City University of Hong Kong, Hong Kong, China

Received  October 2004 Revised  March 2005 Published  July 2005

As we know, the transportation plan plays a very important role in reducing cost and time of shipping products. In this paper, we propose a bilevel transportation model to help decision makers to work more efficiently. We propose an exact penalty method for the bilevel transportation model, then test it by using both randomly generated test problems and problems with practical data which are collected in a very large company in China. These results of numerical tests show that the exact penalty method is very efficient in solving both kinds of problems.
Keywords: transportation plan, exact penalty method., Bilevel transportation problem.
Mathematics Subject Classification: 90C3.
Citation: G.S. Liu, J.Z. Zhang. Decision making of transportation plan, a bilevel transportation problem approach. Journal of Industrial and Management Optimization, 2005, 1 (3) : 305-314. doi: 10.3934/jimo.2005.1.305
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