Abstract
Including both transportation supply and demand management (TS-DM) measures underpins the development of an effective transportation management strategy. One may consider transportation infrastructure provision as the supply; whereas the traveling public as the demand, subject to demand management measures which are often introduced as a separate policy tool, distinct from supply management. Nevertheless, synergy can be achieved in solving congestion problems when TS-DM strategies are developed jointly in an integrated manner. This paper develops a bi-level formulation in determining the time-dependent TS-DM strategy. The interactions between TS-DM strategy and residential/ employment location choices are studied and comparisons between the mixed TS-DM strategy and traditional pure demand management are made. With a small network example, we demonstrate that the integrated TS-DM strategy is a promising way of designing and managing transportation network over time, creating a win-win situation between network operator and road users.