Bilevel allocation-location model for state owned reserve warehouse

With the development of global economy, it is important for a nation to build new or reorganize original state owned reserve warehouse to store strategic energy resources in case of emergency, among which locating where to place is now becoming the most critical one. In this paper, we formulate a bilevel allocation-location model with bias policy taking allocation decision, location decision as well as factor of imbalance development of regions into account. We then give a heuristic algorithm to solve the problem.