IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v291y2021i1p52-66.html
   My bibliography  Save this article

A deterministic bounding procedure for the global optimization of a bi-level mixed-integer problem

Author

Listed:
  • Soares, Inês
  • Alves, Maria João
  • Henggeler Antunes, Carlos

Abstract

In this paper, a deterministic bounding procedure for the global optimization of a mixed-integer bi-level programming problem is proposed. The aim has been to develop an efficient algorithm to deal with a case study in the electricity retail market. In this problem, an electricity retailer wants to define a time-of-use tariff structure to maximize profits, but he has to take into account the consumers’ reaction by means of re-scheduling appliance operation to minimize costs. The problem has been formulated as a bi-level mixed-integer programming model.

Suggested Citation

  • Soares, Inês & Alves, Maria João & Henggeler Antunes, Carlos, 2021. "A deterministic bounding procedure for the global optimization of a bi-level mixed-integer problem," European Journal of Operational Research, Elsevier, vol. 291(1), pages 52-66.
    • Handle: RePEc:eee:ejores:v:291:y:2021:i:1:p:52-66
    DOI: 10.1016/j.ejor.2020.09.015
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221720308018
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2020.09.015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Matteo Fischetti & Ivana Ljubić & Michele Monaci & Markus Sinnl, 2017. "A New General-Purpose Algorithm for Mixed-Integer Bilevel Linear Programs," Operations Research, INFORMS, vol. 65(6), pages 1615-1637, December.
    2. Aussel, Didier & Brotcorne, Luce & Lepaul, Sébastien & von Niederhäusern, Léonard, 2020. "A trilevel model for best response in energy demand-side management," European Journal of Operational Research, Elsevier, vol. 281(2), pages 299-315.
    3. Alexander Mitsos, 2010. "Global solution of nonlinear mixed-integer bilevel programs," Journal of Global Optimization, Springer, vol. 47(4), pages 557-582, August.
    4. Soares, Inês & Alves, Maria João & Antunes, Carlos Henggeler, 2020. "Designing time-of-use tariffs in electricity retail markets using a bi-level model – Estimating bounds when the lower level problem cannot be exactly solved," Omega, Elsevier, vol. 93(C).
    5. Zeynep Gümüş & Christodoulos Floudas, 2005. "Global optimization of mixed-integer bilevel programming problems," Computational Management Science, Springer, vol. 2(3), pages 181-212, July.
    6. Zugno, Marco & Morales, Juan Miguel & Pinson, Pierre & Madsen, Henrik, 2013. "A bilevel model for electricity retailers' participation in a demand response market environment," Energy Economics, Elsevier, vol. 36(C), pages 182-197.
    7. Leonardo Lozano & J. Cole Smith, 2017. "A Value-Function-Based Exact Approach for the Bilevel Mixed-Integer Programming Problem," Operations Research, INFORMS, vol. 65(3), pages 768-786, June.
    8. James T. Moore & Jonathan F. Bard, 1990. "The Mixed Integer Linear Bilevel Programming Problem," Operations Research, INFORMS, vol. 38(5), pages 911-921, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Catanzaro, Daniele & Pesenti, Raffaele & Ronco, Roberto, 2021. "Job Scheduling under Time-of-Use Energy Tariffs for Sustainable Manufacturing: A Survey," LIDAM Discussion Papers CORE 2021019, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    2. Catanzaro, Daniele & Pesenti, Raffaele & Ronco, Roberto, 2023. "Job scheduling under Time-of-Use energy tariffs for sustainable manufacturing: a survey," European Journal of Operational Research, Elsevier, vol. 308(3), pages 1091-1109.
    3. Cai, Qiran & Xu, Qingyang & Qing, Jing & Shi, Gang & Liang, Qiao-Mei, 2022. "Promoting wind and photovoltaics renewable energy integration through demand response: Dynamic pricing mechanism design and economic analysis for smart residential communities," Energy, Elsevier, vol. 261(PB).
    4. Oggioni, Giorgia & Schwartz, Alexandra & Wiertz, Ann-Kathrin & Zöttl, Gregor, 2024. "Dynamic pricing and strategic retailers in the energy sector: A multi-leader-follower approach," European Journal of Operational Research, Elsevier, vol. 312(1), pages 255-272.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlos Henggeler Antunes & Maria João Alves & Billur Ecer, 2020. "Bilevel optimization to deal with demand response in power grids: models, methods and challenges," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(3), pages 814-842, October.
    2. George Kozanidis & Eftychia Kostarelou, 2023. "An Exact Solution Algorithm for Integer Bilevel Programming with Application in Energy Market Optimization," Journal of Optimization Theory and Applications, Springer, vol. 197(2), pages 573-607, May.
    3. Matteo Fischetti & Ivana Ljubić & Michele Monaci & Markus Sinnl, 2017. "A New General-Purpose Algorithm for Mixed-Integer Bilevel Linear Programs," Operations Research, INFORMS, vol. 65(6), pages 1615-1637, December.
    4. Wang, Guangmin & Gao, Ziyou & Xu, Meng, 2019. "Integrating link-based discrete credit charging scheme into discrete network design problem," European Journal of Operational Research, Elsevier, vol. 272(1), pages 176-187.
    5. Arega Getaneh Abate & Rosana Riccardi & Carlos Ruiz, 2021. "Dynamic tariffs-based demand response in retail electricity market under uncertainty," Papers 2105.03405, arXiv.org, revised Feb 2024.
    6. Liu, Shaonan & Wang, Mingzheng & Kong, Nan & Hu, Xiangpei, 2021. "An enhanced branch-and-bound algorithm for bilevel integer linear programming," European Journal of Operational Research, Elsevier, vol. 291(2), pages 661-679.
    7. Böttger, T. & Grimm, V. & Kleinert, T. & Schmidt, M., 2022. "The cost of decoupling trade and transport in the European entry-exit gas market with linear physics modeling," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1095-1111.
    8. Holger Heitsch & René Henrion & Thomas Kleinert & Martin Schmidt, 2022. "On convex lower-level black-box constraints in bilevel optimization with an application to gas market models with chance constraints," Journal of Global Optimization, Springer, vol. 84(3), pages 651-685, November.
    9. Tanınmış, Kübra & Aras, Necati & Altınel, İ. Kuban, 2022. "Improved x-space algorithm for min-max bilevel problems with an application to misinformation spread in social networks," European Journal of Operational Research, Elsevier, vol. 297(1), pages 40-52.
    10. Dajun Yue & Jiyao Gao & Bo Zeng & Fengqi You, 2019. "A projection-based reformulation and decomposition algorithm for global optimization of a class of mixed integer bilevel linear programs," Journal of Global Optimization, Springer, vol. 73(1), pages 27-57, January.
    11. Juan S. Borrero & Leonardo Lozano, 2021. "Modeling Defender-Attacker Problems as Robust Linear Programs with Mixed-Integer Uncertainty Sets," INFORMS Journal on Computing, INFORMS, vol. 33(4), pages 1570-1589, October.
    12. Junlong Zhang & Osman Y. Özaltın, 2021. "Bilevel Integer Programs with Stochastic Right-Hand Sides," INFORMS Journal on Computing, INFORMS, vol. 33(4), pages 1644-1660, October.
    13. Maximilian Merkert & Galina Orlinskaya & Dieter Weninger, 2022. "An exact projection-based algorithm for bilevel mixed-integer problems with nonlinearities," Journal of Global Optimization, Springer, vol. 84(3), pages 607-650, November.
    14. Martelli, Emanuele & Freschini, Marco & Zatti, Matteo, 2020. "Optimization of renewable energy subsidy and carbon tax for multi energy systems using bilevel programming," Applied Energy, Elsevier, vol. 267(C).
    15. Küçükaydin, Hande & Aras, Necati & Kuban AltInel, I., 2011. "Competitive facility location problem with attractiveness adjustment of the follower: A bilevel programming model and its solution," European Journal of Operational Research, Elsevier, vol. 208(3), pages 206-220, February.
    16. Liu, Shaonan & Kong, Nan & Parikh, Pratik & Wang, Mingzheng, 2023. "Optimal trauma care network redesign with government subsidy: A bilevel integer programming approach," Omega, Elsevier, vol. 119(C).
    17. Yasmine Beck & Daniel Bienstock & Martin Schmidt & Johannes Thürauf, 2023. "On a Computationally Ill-Behaved Bilevel Problem with a Continuous and Nonconvex Lower Level," Journal of Optimization Theory and Applications, Springer, vol. 198(1), pages 428-447, July.
    18. Losada, Chaya & Scaparra, M. Paola & O’Hanley, Jesse R., 2012. "Optimizing system resilience: A facility protection model with recovery time," European Journal of Operational Research, Elsevier, vol. 217(3), pages 519-530.
    19. Bucarey, Víctor & Labbé, Martine & Morales, Juan M. & Pineda, Salvador, 2021. "An exact dynamic programming approach to segmented isotonic regression," Omega, Elsevier, vol. 105(C).
    20. Meng Xu & Guangmin Wang & Susan Grant-Muller & Ziyou Gao, 2017. "Joint road toll pricing and capacity development in discrete transport network design problem," Transportation, Springer, vol. 44(4), pages 731-752, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:291:y:2021:i:1:p:52-66. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.