Networks and Spatial Economics

, Volume 11, Issue 2, pp 371–389

Robust Optimization Model for a Dynamic Network Design Problem Under Demand Uncertainty

Authors

  • Byung Do Chung
    • Department of Industrial and Manufacturing EngineeringThe Pennsylvania State University
    • Department of Industrial and Manufacturing EngineeringThe Pennsylvania State University
  • Chi Xie
    • Center for Transportation Research, Department of Civil, Architectural and Environmental EngineeringThe University of Texas at Austin
  • Andreas Thorsen
    • Department of Industrial and Manufacturing EngineeringThe Pennsylvania State University
Article

DOI: 10.1007/s11067-010-9147-2

Cite this article as:
Chung, B.D., Yao, T., Xie, C. et al. Netw Spat Econ (2011) 11: 371. doi:10.1007/s11067-010-9147-2

Abstract

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.

Keywords

Network designDynamic traffic assignmentRobust optimizationData uncertainty

Copyright information

© Springer Science+Business Media, LLC 2010