“…For example, in chemical engineering, bi-level optimization is exploited to optimize the design and control of processes (Mohideen et al 1996b, Bansal et al 2000a, in electricity markets, it is applied to strategic pricing (Fampa et al 2008), and in supply chain problems, production-distribution interactions are studied (Calvete et al 2011). Bi-level optimization methodology was developed by Mohideen et al (1996b) who proposed an algorithm for solving integrated design and operation problems including dynamic mathematical models, uncertainty parameters, timevarying disturbances and robust stability criteria. Subsequently, Bansal et al (2000b) described both simultaneous and sequential solution procedures for bi-level problems.…”