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2016

Mixed-integer bilevel optimization for capacity planning with rational markets

4 years 3 months ago
Mixed-integer bilevel optimization for capacity planning with rational markets
We formulate the capacity expansion planning as a bilevel optimization to model the hierarchical decision structure involving industrial producers and consumers. The formulation is a mixed-integer bilevel linear program in which the upper level maximizes the profit of a producer and the lower level minimizes the cost paid by markets. The upper-level problem includes mixed-integer variables that establish the expansion plan; the lower level problem is an LP that decides demands assignments. We reformulate the bilevel optimization as a single-level problem using two different approaches: KKT reformulation and duality-based reformulation. We analyze the performance of these reformulations and compare their results with the expansion plans obtained from the traditional single-level formulation. For the solution of large-scale problems, we propose improvements on the duality-based reformulation that allows reducing the number of variables and constraints. The formulations and the solutio...
Pablo Garcia-Herreros, Lei Zhang, Pratik Misra, Er
Added 31 Mar 2016
Updated 31 Mar 2016
Type Journal
Year 2016
Where CCE
Authors Pablo Garcia-Herreros, Lei Zhang, Pratik Misra, Erdem Arslan, Sanjay Mehta, Ignacio E. Grossmann
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