Multi-level programming techniques are developed to solve decentralize
d planning problems with multiple decision makers in a hierarchical or
ganization. These become more important for contemporary decentralized
organizations where each unit or department seeks its own interests.
Traditional approaches include vertex enumeration and transformation a
pproaches. The former is in search of a compromise vertex based on adj
usting the control variable(s) of the higher level and thus is rather
inefficient. The latter transfers the lower-level programming problem
to be the constraints of the higher level by its Kuhn-Tucker condition
s or penalty function; the corresponding auxiliary problem becomes non
-linear and the decision information is also implicit. In this study,
we use the concepts of tolerance membership functions and multiple obj
ective optimization to develop a fuzzy approach for solving the above
problems. The upper-level decision maker defines his or her objective
and decisions with possible tolerances which are described by membersh
ip functions of fuzzy set theory. This information then constrains the
lower-level decision maker's feasible space. A solution search relies
on the change of membership functions instead of vertex enumeration a
nd no higher order constraints are generated. Thus, the proposed appro
ach will not increase the complexities of original problems and will u
sually solve a multilevel programming problem in a single iteration. T
o demonstrate our concept, we have solved numerical examples and compa
red their solutions with classical solutions.