A λ-Cut and Goal-Programming-Based Algorithm for Fuzzy-Linear Multiple-Objective Bilevel Optimization

Bilevel-programming techniques are developed to handle decentralized problems with two-level decision makers, which are leaders and followers, who may have more than one objective to achieve. This paper proposes a λ-cut and goal-programming-based algorithm to solve fuzzy-linear multiple-objective bilevel (FLMOB) decision problems. First, based on the definition of a distance measure between two fuzzy vectors using λ-cut, a fuzzy-linear bilevel goal (FLBG) model is formatted, and related theorems are proved. Then, using a λ-cut for fuzzy coefficients and a goal-programming strategy for multiple objectives, a λ-cut and goal-programming-based algorithm to solve FLMOB decision problems is presented. A case study for a newsboy problem is adopted to illustrate the application and executing procedure of this algorithm. Finally, experiments are carried out to discuss and analyze the performance of this algorithm.