RZRM: Paper Abstract

Working Paper 2002-02, Freiberg University of Mining and Technology, Freiberg, Germany, November 2002

Discrete Bilevel Programming: Application to a Gas Shipper's Problem

Stephan Dempe
Department of Mathematics
Freiberg University of Mining and Technology

Vyacheslav V. Kalashnikov
Department of Mathematics
ITESM - Monterrey

Roger Z. Ríos Mercado
Graduate Program in Systems Engineering
Universidad Autónoma de Nuevo León

Abstract: In this paper, we present a mathematical framework for the problem of minimizing the cash-out penalties of a natural gas shipper. The problem is modeled as a mixed-integer bilevel programming problem. To solve it efficiently, we re-formulate it as a standard mathematical programming problem making use of an exact penalty function approach and describe a branch and bound algorithm for its solution.

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