Review of Bilevel Optimization Approaches and Applications in Aerospace Engineering

Bilevel optimization is proposed when the objective problem has two decision makers with different hierarchies. In such cases, the lower level decision is embedded within the higher-level constraints. Micro and macro decision making of transportation are considered as hierarchal problems, On the one hand, user’s decision tends to choose lower cost, and the other hand is transportation company’s to maximize its benefit. This paper’s aim is to provide a review on research and methods with different concerns for modeling and solving bilevel problems in last three decades. In addition, the latest application of this kind of optimization is presented in aerospace transport issues. This paper also introduces the classic and heuristic algorithms for solving bilevel optimization.