Freeway ramp metering systems have been used to improve urban freeway flow. However, control strategies must be properly adjusted to account for ramp queues overflowing onto surface streets and provide equitable on-ramp control during various operating periods. An improved solution can be obtained by optimizing this problem simultaneously for a group of time slices. This study identifies and examines a microcomputer-based optimization scheme that can assist in developing efficient freeway control strategies for on-line freeway surveillance and control. A multi-level freeway control structure is employed for which ramp metering control algorithms are developed for each level of control. Flow-based and lane occupancy-based system algorithms are presented. Detailed data file requirements are provided for each control level. A microcomputer prototype, or laboratory test version of the system level, will be described in a companion project report.