Abstract:
Organizational decision making often involves two
decision levels. When the leader at the upper level
attempts to optimize his/her objective, the follower at
the lower level tries to find an optimized strategy
according to each of possible decisions made by the
leader. Furthermore, such bilevel decision making may
involve uncertain parameters which appear either in
the objective functions or constraints of the leader or
the follower. Following our previous work, this study
first proposes a fuzzy parameter bilevel programming
model and related theories. It then develops an
approximation Kth-Best algorithm for solving such
fuzzy bilevel programming problems. A numerical
example further illustrates the proposed algorithm.