BI-LEVEL MODEL: NEW APPROACH TO DYNAMIC VEHICLE ALLOCATION IN SUPPLY CHAIN

There are different decision levels with distinct makers in a decentralized Supply Chain, for example, shippers and carriers. Nevertheless, most studies conducted considering only one decision-making level. The carrier is the agent Dynamic Vehicle Allocation (DVA) problem allocates vehicles to maximize its profit, usually delaying shipping. It necessary respect partnership principle. This paper presents DVA using bi-level programming. shipper’s objective minimize shipping delays, while carrier’s profits. exact algorithm used solve Bi-level problem. results show potential applications logistics, decreasing both transportation delays costs when synchronizing shippers’ decisions.