Line-Leasing and Planning for Reconfigurable Private Data Networks

Posted: 5 May 1998

See all articles by Hueng Sik Choi

Hueng Sik Choi

Kookmin University

Abraham Seidmann

University of Rochester - Simon Business School

Date Written: Undated

Abstract

Our paper studies the line-leasing decision and the circuit- routing problem in the design of reconfigurable private networks. These networks can automatically modify their logical configurations when necessary by employing digital connections. By exploiting the economies of scale available when using higher-capacity circuits, we develop an efficient method for determining a line-leasing policy that minimizes the packet delay and line-leasing costs. In addition, we also show how to derive efficient cross connection schemes and traffic-routing decisions for various short-run input traffic patterns. The various decision problems are formulated as non-linear mixed integer programs. We use Lagrangean relaxation and subgradient optimization to get near-optimal solutions with duality gaps ranging between 3 percent and 14 percent. We develop two distinct approaches for solving the line-leasing problem as a function of the potential input traffic patterns. One approach uses the average daily traffic and the other uses the more detailed intra-day traffic flow patterns. Numerical experiments indicate that the average traffic level can serve as a simple basis for deriving a near-optimal topology for reconfigurable networks. This finding allows network managers to reduce the costs involved in designing networks that exploit the flexibility of Digital Crossconnect Systems. We also show that it is economically beneficial for managers of large-scale private data networks to incorporate the logical design and traffic routing problems into their long-run line-leasing problems.

JEL Classification: L96, L86, C6

Suggested Citation

Choi, Hueng Sik and Seidmann, Abraham Avi, Line-Leasing and Planning for Reconfigurable Private Data Networks (Undated). Simon School of Business Working Paper CIS 94-01. Available at SSRN: https://ssrn.com/abstract=4078

Hueng Sik Choi

Kookmin University ( email )

Chongnung-dong, Songbuk-gu
Seoul, 136-702
Korea, Republic of (South Korea)

Abraham Avi Seidmann (Contact Author)

University of Rochester - Simon Business School ( email )

Carol Simon Hall 3-333C
Rochester, NY 14627
United States
585-275-5694 (Phone)
585-275-9331 (Fax)

HOME PAGE: http://www.ssb.rochester.edu/fac/Seidmannav/

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