Robust Optimization Model for a Dynamic Network Design Problem Under Demand Uncertainty
 Byung Do Chung,
 Tao Yao,
 Chi Xie,
 Andreas Thorsen
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This paper describes a robust optimization approach for a network design problem explicitly incorporating traffic dynamics and demand uncertainty. In particular, we consider a cell transmission model based network design problem of the linear programming type and use box uncertainty sets to characterize the demand uncertainty. The major contribution of this paper is to formulate such a robust network design problem as a tractable linear programming model and demonstrate the model robustness by comparing its solution performance with the nominal solution from the corresponding deterministic model. The results of the numerical experiments justify the modeling advantage of the robust optimization approach and provide useful managerial insights for enacting capacity expansion policies under demand uncertainty.
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 Title
 Robust Optimization Model for a Dynamic Network Design Problem Under Demand Uncertainty
 Journal

Networks and Spatial Economics
Volume 11, Issue 2 , pp 371389
 Cover Date
 20110601
 DOI
 10.1007/s1106701091472
 Print ISSN
 1566113X
 Online ISSN
 15729427
 Publisher
 Springer US
 Additional Links
 Topics
 Keywords

 Network design
 Dynamic traffic assignment
 Robust optimization
 Data uncertainty
 Industry Sectors
 Authors

 Byung Do Chung ^{(1)}
 Tao Yao ^{(1)}
 Chi Xie ^{(2)}
 Andreas Thorsen ^{(1)}
 Author Affiliations

 1. Department of Industrial and Manufacturing Engineering, The Pennsylvania State University, University Park, PA, USA
 2. Center for Transportation Research, Department of Civil, Architectural and Environmental Engineering, The University of Texas at Austin, Austin, TX, USA