An Approximation Branch-and-Bound Algorithm for Fuzzy Bilevel Decision Making Problems

Organizational decision making often involves two decision levels. When the leader at the upper level attempts to optimize his/her objective, the follower at the lower level tries to find an optimized strategy according to each of possible decisions made by the leader. Furthermore, such bilevel decision making may involve uncertain parameters which appear either in the objective functions or constraints of the leader or the follower. Following our previous work on fuzzy bilevel decision making, this study proposes a solution concept and related theorems for general-fuzzy-number based fuzzy parameter bilevel programming problems. It then develops an approximation Branch-and-bound algorithm to solve the proposed problem.