In this paper, a new branch-and-cut algorithm for mixed integer bi-level programming is proposed. For achieving this purpose, a historical perspective of the development of enumeration methods in the field of bi-level linear programming is considered. Then, we present some obstacles for using branch and bound method based on them, and an algorithm is developed to solve for mixed integer bi-level problem. Finally, we use a preference function to determine the choice of branching and specialized cuts in a branch and cut tree. Computational results are reported and compared favorably to those of previous methods and then implications discussed. The results show that not only the proposed algorithm can find high quality solutions for solving a number of the problems, but also it is competitive with other famous published algorithms.
