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Our paper deals with the problem of choosing correct parameters for the bilevel linear programming solving algorithm proposed by M. Sakawa and I. Nishizaki. We suggest an approach based on factoraggregation, which is a specially designed general aggregation operator. The idea of factoraggregation arises from factorization by the equivalence relation generated by the upper level objective function. We prove several important properties of the factoraggregation result regarding the analysis of parameters in order to find an optimal solution for the problem. We illustrate the proposed method with some numerical and graphical examples, in particular we consider a modification of the mixed production planning problem.

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