A Bilevel Programming Model and Algorithm for the Static Bike Repositioning Problem

In this paper, by taking the outsourcing transportation mode into account, a bilevel programming model is proposed to formulate the static bike repositioning (SBR) problem, which can be used to determine the number of bikes loaded and unloaded at each station and the optimal truck routes in bike sharing systems (BSS). The upper-level BSS providers determine the optimal loading and unloading quantities at stations to minimize the total penalties. The lower-level truck owner pursues the minimum transportation route cost. An iterated local search and tabu search are developed to solve the model. Computational tests on a set of instances from 20 to 200 bikes demonstrate the effectiveness of the model and algorithms proposed, together with some insightful findings.