Decision models for designing and planning private communication networks

  • Authors:

  • Sik Choi;Abraham Seidmann;Myung W. Suh

  • Affiliations:

  • School of Business Economics, Kookmin University, Seoul 136-702, Korea;William E. Simon Graduate School of Business Administration, University of Rochester, Rochester, NY 14627, USA;Department of Administrative Science, Naval Postgraduate School, Monterey, CA 93943, USA

  • Venue:
  • Decision Support Systems
  • Year:
  • 1995

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Abstract

We consider the recently developed reconfigurable digital data networks consisting of T1/T3 circuits and Digital Crossconnect Systems (DCSs). A DCS is a device to patch base channels electronically from one T1/T3 circuit to another with a negligible queuing delay at the connecting node. We present new decision models for the design and circuit leasing policies of such digital backbone networks. Our model takes advantage of the special capabilities of the DCS technology and is likely to result in remarkable economic gains for the private network users. The formulation and analyses presented here simultaneously address the following problems: physical link and capacity selection, logical network configuration and channel assignment, and traffic routing on the logical network. The problem formulation results in a large-scale non-linear mixed integer program, and we propose an efficient solution methodology employing Lagrangean relaxation and subgradient optimization. Several numerical results illustrate the utility of our approach for these complex problems. We show that the economies of scale built into the tariff structure of these digital networks can be successfully exploited, and that the inherent flexibility of DCSs leads to logical networks that are dramatically different from their underlying physical topologies.