A bilevel mixed-integer program for critical infrastructure protection planning

Vulnerability to sudden service disruptions due to deliberate sabotage and terrorist attacks is one of the major threats of today. In this paper, we present a bilevel formulation of the r-interdiction median problem with fortification (RIMF). RIMF identifies the most cost-effective way of allocating protective resources among the facilities of an existing but vulnerable system so that the impact of the most disruptive attack to r unprotected facilities is minimized. The model is based upon the classical p-median location model and assumes that the efficiency of the system is measured in terms of accessibility or service provision costs. In the bilevel formulation, the top level problem involves the decisions about which facilities to fortify in order to minimize the worst-case efficiency reduction due to the loss of unprotected facilities. Worst-case scenario losses are modeled in the lower-level interdiction problem. We solve the bilevel problem through an implicit enumeration (IE) algorithm, which relies on the efficient solution of the lower-level interdiction problem. Extensive computational results are reported, including comparisons with earlier results obtained by a single-level approach to the problem.