An approximation Kuhn-Tucker approach for fuzzy linear bilevel decision making

Abstract

In bilevel decision making, the leader aims to achieve an optimal solution by considering the follower's optimized strategy to react each of his/her possible decisions. In a real-world bilevel decision environment, uncertainty must be considered when modeling the objective functions and constraints of the leader and the follower. Following our previous work, this chapter proposes a fuzzy bilevel decision making model to describe bilevel decision making under uncertainty. After giving the definitions of optimal solutions and related theorems for fuzzy bilevel decision problems this chapter develops an approximation Kuhn-Tucker approach to solve the problem. Finally, an example of reverse logistics management illustrates the application of this proposed fuzzy bilevel decision making approach. © 2008 Springer-Verlag Berlin Heidelberg.