Determining a subsidy rate for Taiwan's recycling glass industry: an application of bi-level programming

This study attempts to optimize the operations of the Recycling Fund Management Board (RFMB), founded by the Environmental Protection Administration of the R.O.C. Government (on Taiwan), through the decision of a subsidy rate for the domestic glass recycling industry. The hierarchical and interactiv...

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Vydané v:The Journal of the Operational Research Society Ročník 63; číslo 1; s. 28 - 37
Hlavní autori: Shih, H-S, Cheng, C-B, Wen, U-P, Huang, Y-C, Peng, M-Y
Médium: Journal Article
Jazyk:English
Vydavateľské údaje: London Taylor & Francis 01.01.2012
Palgrave Macmillan
Palgrave Macmillan UK
Taylor & Francis Ltd
Edícia:Journal of the Operational Research Society
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ISSN:0160-5682, 1476-9360
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Popis
Shrnutí:This study attempts to optimize the operations of the Recycling Fund Management Board (RFMB), founded by the Environmental Protection Administration of the R.O.C. Government (on Taiwan), through the decision of a subsidy rate for the domestic glass recycling industry. The hierarchical and interactive nature between the two parties is modelled by bi-level programming, where the RFMB plays the upper-level decision unit while the recycling industry is the lower-level counterpart. In order to solve the problem by optimization software, the bi-level formulation is transformed to a single-level problem via Karush-Kuhn-Tucker optimality conditions and is further transformed to a 0−1 mixed integer programming problem by variable substitution. The problem is solved with real-world data, and the obtained solutions are analysed and compared with the RFMB's current operations. The results suggest that the proposed approach can improve the operations of the RFMB.
Bibliografia:SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 14
ISSN:0160-5682
1476-9360
DOI:10.1057/jors.2011.13