Abstract

Network design models have wide applications in telecommunications and transportation planning; see, for example, the survey articles by Magnanti and Wong (1984), Minoux (1989), Chapter 16 of the book by Ahuja, Magnanti and Orlin (1993), Section 13 of Ahuja et al. (1995). In particular, Gavish (1991) and Balakrishnan et al. (1991) present reviews of important applications in telecommunications. In many of these applications, it is required to send flows (which may be fractional) to satisfy demands given arcs with existing capacities, or to install, in discrete amounts, additional facilities with fixed capacities. In doing so, one pays a price not only for routing flows, but also for using an arc or installing additional facilities. The objective is then to determine the optimal amounts of flows to be routed and the facilities to be installed. Document type: Part of book or chapter of book