Model and algorithm for bilevel newsboy problem with fuzzy demands and discounts

This paper considers the model for the newsboy problem with fuzzy demands and quantity discounts in hierarchical decision system, in which the manufacturer is considered as the decision-maker (DM) of the top level and decides the wholesale prices of newspaper in order to maximize his profit, while the retailers are the DMs of the lower level and decide the ordering quantities of newspaper in order to maximize their own expected profits. A bilevel programming model is formulated for this kind of problem. To solve the model, a hybrid intelligent algorithm based on genetic algorithm and fuzzy simulation is developed, and some numerical examples are given to illustrate its effectiveness.