Analytical and Computational Aspects of Collaborative Optimization

Bilevel problem formulations have received considerable attention as an approach to multidisciplinary optimization in engineering. We examine the analytical and computational properties of one such approach, collaborative optimization. The resulting system-level optimization problems suffer from inherent computational difficulties due to the bilevel nature of the method. Most notably, it is impossible to characterize and hence identify solutions of the system-level problems because the standard first-order conditions for solutions of constrained optimization problems do not hold. The analytical features of the system-level problem make it difficult to apply conventional nonlinear programming algorithms. Simple examples illustrate the analysis and the algorithmic consequences for optimization methods. We conclude with additional observations on the practical implications of the analytical and computational properties of collaborative optimization.