Networks and Spatial Economics

, Volume 11, Issue 2, pp 371–389 | Cite as

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

  • Byung Do Chung
  • Tao Yao
  • Chi Xie
  • Andreas Thorsen
Article

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 

Notes

Acknowledgment

This work was partially supported by the grant awards CMMI-0824640 and CMMI-0900040 from the National Science Foundation.

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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • Byung Do Chung
    • 1
  • Tao Yao
    • 1
  • Chi Xie
    • 2
  • Andreas Thorsen
    • 1
  1. 1.Department of Industrial and Manufacturing EngineeringThe Pennsylvania State UniversityUniversity ParkUSA
  2. 2.Center for Transportation Research, Department of Civil, Architectural and Environmental EngineeringThe University of Texas at AustinAustinUSA

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