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

First Online: 04 September 2010 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 design Dynamic traffic assignment Robust optimization Data uncertainty

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