Solving the Bidding Generation Problem in Transportation Services Procurement by Using Bi-level Programming

This paper studies the Bidding Generation Problem (BGP) by using bi-level programming. The carrier, as the upper level decision maker, tries to generate its optimal bidding strategy considering the possible reaction of the shipper; and the shipper, as the lower level decision maker, tries to select the proper carriers to provide the transportation services in order to minimize its total cost. Then after establishing the bi-level programming, a particle swarm optimization (PSO) is designed to solve the proposed model.