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A bicriteria stochastic programming model for capacity expansion in telecommunications

Author

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  • Morten Riis
  • Jørn Lodahl

Abstract

We consider capacity expansion of a telecommunications network in the face of uncertain future demand and potential future failures of network components. The problem is formulated as a bicriteria stochastic program with recourse in which the total cost of the capacity expansion and the probability of future capacity requirements to be violated are simultaneously minimized. Assuming the existence of a finite number of possible future states of the world, an algorithm for the problem is elaborated. The algorithm determines all non-dominated solutions to the problem by a reduced feasible region method, solving a sequence of restricted subproblems by a cutting plane procedure. Computational results are reported for three different problem instances, one of which is a real-life problem faced by SONOFON, a Danish communications network operator. Copyright Springer-Verlag Berlin Heidelberg 2002

Suggested Citation

  • Morten Riis & Jørn Lodahl, 2002. "A bicriteria stochastic programming model for capacity expansion in telecommunications," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 56(1), pages 83-100, August.
    • Handle: RePEc:spr:mathme:v:56:y:2002:i:1:p:83-100
    DOI: 10.1007/s001860200201
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    Citations

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    Cited by:

    1. Kavinesh J. Singh & Andy B. Philpott & R. Kevin Wood, 2009. "Dantzig-Wolfe Decomposition for Solving Multistage Stochastic Capacity-Planning Problems," Operations Research, INFORMS, vol. 57(5), pages 1271-1286, October.
    2. M Riis & A J V Skriver & S F Møller, 2005. "Internet protocol network design with uncertain demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(10), pages 1184-1195, October.
    3. S H Melouk & B B Keskin & C Armbrester & M Anderson, 2011. "A simulation optimization-based decision support tool for mitigating traffic congestion," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(11), pages 1971-1982, November.
    4. Olinick, Eli V. & Rosenberger, Jay M., 2008. "Optimizing revenue in CDMA networks under demand uncertainty," European Journal of Operational Research, Elsevier, vol. 186(2), pages 812-825, April.
    5. Jitamitra Desai & Shalinee Kishore, 2017. "A global optimization framework for distributed antenna location in CDMA cellular networks," Annals of Operations Research, Springer, vol. 253(1), pages 169-191, June.

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