Copyright © 2013 Liming Yao and Jiuping Xu. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper focuses on the development of a bilevel optimization model with random coefficients for a production-inventory system. The expected value operator technique is used to deal with the objective function, and rough approximation is applied to convert the stochastic constraint into a crisp constraint. Then an interactive programming method and genetic algorithm are utilized to solve the crisp model. Finally, an application is given to show the efficiency of the proposed model and approaches in solving the problem.