Multiperiod capacity expansion of a telecommunications connection with uncertain demand

Authors:
Morten Riis;Kim Allan Andersen
Affiliations:
Department of Operations Research, University of Aarhus, building 530, Ny Munkegade, DK - 8000 Aarhus C, Denmark;Department of Operations Research, University of Aarhus, building 530, Ny Munkegade, DK - 8000 Aarhus C, Denmark
Venue:
Computers and Operations Research
Year:
2004

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Abstract

We consider multiperiod capacity expansion of a telecommunications connection with uncertain demand. We present a new preprocessing rule which drastically reduces computation time of an existing algorithm for a two-stage formulation of the problem. Also, an alternative multistage formulation of the problem is given and we elaborate a recursive solution procedure. Both algorithms have been implemented in C++, and we present the results of a series of computational experiments, demonstrating the effect of the new preprocessing rule and the practicability of the multistage procedure.