“…For example, the objective function value could be the result of a process simulation, a finite element method study, a computational fluid-dynamic analysis, or the value returned by the solver of a lower level optimization problem (i.e., in bilevel programming, the lower level optimization problem is solved multiple times for fixed values of the upper level variables). Non-smooth black-box problems with non-differentiable and/or discontinuous objective functions typically arise in chemical and energy engineering when the process is simulated by means of a sequential flowsheet solver, as in Luus and Jaakola (1973a), Gaines and Gaddy (1976), Banga and Seider (1996), Gross and Roosen (1998), and Morin, Wahl, and Molnvik (2011). On the other hand, Gassner and Marechal (2009) have shown that total site optimization problems, in which the process is optimized together with the heat exchanger network and the utility systems, can be successfully decomposed into bilevel programs with a non-smooth black-box problem at the upper level, and a Mixed Integer Linear Problem (MILP) at the lower level.…”