Section: New Results

Bi-level formulation for a Long-Distance Freight Transportation Problem

Participants : M. Diaby, L. Brotcorne, E.-G. Talbi.

A company wants to convey different types of products from origin i to points of destination j. It can deliver the goods itself or hire a transport company, and subcontract part of the application. The transport company must offer attractive prices while aiming to maximize its profit. The aim of this problem is to determine rates that allow the carrier to maximize its revenues and remain affordable for the customer. The problem is modeled as a bilevel program at the first level, the carrier (leader) wants to maximize its revenues; at the second level, the client (follower) aims to minimize its expenses. A primal dual heuristic has been proposed to solve the problem.