Variable Speed Limit Sign (VSLS) Systems enable speed limits to be changed dynamically in response to traffic conditions so that traffic incidents can be reduced significantly on freeway work zones. In this paper, we examined how many and where VSLS are to be placed and the speed limits to be set and proposed a bilevel programming model to perform this decision making operation. The appropriate speed limits and deployments of VSLS were got by case study, and they were analyzed by a simulation to prove the empirical features of traffic breakdown at freeway work zones. Then the results of model comparison and simulation evaluation illustrate that the proposed method outperforms existing models in terms of maximizing information benefit and minimizing average queue length, total delay, and total stop frequency on the freeway work zone.