On some cost allocation problems in communication networks

New technologies prompted an explosion in the development of communication networks. Modern network optimization techniques usually lead to a design of the most profitable, or the least cost network that will provide some service to customers. There are various costs and gains associated with building and using a communication network. Moreover, the involved multiple network users and/or owners possibly have conflicting objectives. However, they might cooperate in order to decrease their joint cost or increase their joint profit. Clearly, these individuals or organizations will support a globally \u27attractive\u27 solution(s) only if their expectations for a \u27fair share\u27 of the cost or profit are met. Consequently, providing network developers, users and owners with efficiently computable \u27fair\u27 cost allocation solution procedures is of great importance for strategic management. This work is an overview of some recent results (some already published as well as some new) in the development of cooperative game theory based mechanisms to efficiently compute \u27attractive\u27 cost allocation solutions for several important classes of communication networks

Network cost allocation games based on threshold discounting

Consider networks in which each pair of nodes needs to communicate. The communication flow between any pair of nodes can be delivered through a direct link or via some connecting path in the network. By discounting the cost of flow through links for which the high flow volume is anticipated, network designers exploit economies of scale. This approach encourages the concentration of flows and use of relatively small number of links. This led to the design of well known hub networks and more recently hub-like networks. Applications include telecommunications, airline traffic flow, and mail delivery networks. The cost of services delivered through such networks is distributed among its users who may be individuals or organizations with possibly conflicting interests. The cooperation of these users is essential for the exploitation of economies of scale. Consequently, there is a need to find a fair distribution of the cost of providing the service among network users. In this paper, we present a survey of some recent results in the development of cooperative game theory based mechanisms to efficiently characterize cost allocation solutions for hub and hub-like networks. Specifically, we formulate the associated hub and hub-like network cost allocation games. Then, while paying special attention to users\u27 contribution to economies of scale, we demonstrate that some attractive cost allocation solutions, which provide users with the incentive to cooperate, can be efficiently computed

On Cost Allocation in Networks with Threshold Based Discounting

We study network design in which each pair of nodes can communicate via a direct link and the communication flow can be delivered through any path in the network. The cost of flow through each link is discounted if and only if the amount of flow exceeds certain threshold. This exploitation of economies of scale encourages the concentration of flows and use of relatively small number of links. Applications include telecommunications, airline traffic flow, and mail delivery networks. The cost of services delivered through such a network is distributed among its users who may be individuals or organizations with possibly conflicting interests. The cooperation between these users is essential for the exploitation of economies of scale. Consequently, there is a need to ensure a fair distribution of the cost of providing the service among network users. In order to describe this cost allocation problem we formulate the associated cooperative game, to be referred to as the threshold game. We then demonstrate that certain cost allocation solution (the core of the threshold game) can be efficiently applied to relatively ’large’ networks with threshold-based discounting

On green routing and scheduling problem

The vehicle routing and scheduling problem has been studied with much interest within the last four decades. In this paper, some of the existing literature dealing with routing and scheduling problems with environmental issues is reviewed, and a description is provided of the problems that have been investigated and how they are treated using combinatorial optimization tools

A robust solving strategy for the vehicle routing problem with multiple depots and multiple objectives

This document presents the development of a robust solving strategy for the Vehicle Routing Problem with Multiple Depots and Multiple Objectives (MO-MDVRP). The problem tackeled in this work is the problem to minimize the total cost and the load imbalance in vehicle routing plan for distribution of goods. This thesis presents a MILP mathematical model and a solution strategy based on a Hybrid Multi- Objective Scatter Search Algorithm. Several experiments using simulated instances were run proving that the proposed method is quite robust, this is shown in execution times (less than 4 minutes for an instance with 8 depots and 300 customers); also, the proposed method showed good results compared to the results found with the MILP model for small instances (up to 20 clients and 2 depots).MaestríaMagister en Ingeniería Industria

Best matching processes in distributed systems

The growing complexity and dynamic behavior of modern manufacturing and service industries along with competitive and globalized markets have gradually transformed traditional centralized systems into distributed networks of e- (electronic) Systems. Emerging examples include e-Factories, virtual enterprises, smart farms, automated warehouses, and intelligent transportation systems. These (and similar) distributed systems, regardless of context and application, have a property in common: They all involve certain types of interactions (collaborative, competitive, or both) among their distributed individuals—from clusters of passive sensors and machines to complex networks of computers, intelligent robots, humans, and enterprises. Having this common property, such systems may encounter common challenges in terms of suboptimal interactions and thus poor performance, caused by potential mismatch between individuals. For example, mismatched subassembly parts, vehicles—routes, suppliers—retailers, employees—departments, and products—automated guided vehicles—storage locations may lead to low-quality products, congested roads, unstable supply networks, conflicts, and low service level, respectively. This research refers to this problem as best matching, and investigates it as a major design principle of CCT, the Collaborative Control Theory. The original contribution of this research is to elaborate on the fundamentals of best matching in distributed and collaborative systems, by providing general frameworks for (1) Systematic analysis, inclusive taxonomy, analogical and structural comparison between different matching processes; (2) Specification and formulation of problems, and development of algorithms and protocols for best matching; (3) Validation of the models, algorithms, and protocols through extensive numerical experiments and case studies. The first goal is addressed by investigating matching problems in distributed production, manufacturing, supply, and service systems based on a recently developed reference model, the PRISM Taxonomy of Best Matching. Following the second goal, the identified problems are then formulated as mixed-integer programs. Due to the computational complexity of matching problems, various optimization algorithms are developed for solving different problem instances, including modified genetic algorithms, tabu search, and neighbourhood search heuristics. The dynamic and collaborative/competitive behaviors of matching processes in distributed settings are also formulated and examined through various collaboration, best matching, and task administration protocols. In line with the third goal, four case studies are conducted on various manufacturing, supply, and service systems to highlight the impact of best matching on their operational performance, including service level, utilization, stability, and cost-effectiveness, and validate the computational merits of the developed solution methodologies

Network Flexibility for Recourse Considerations in Bi-Criteria Facility Location

What is the best set of facility location decisions for the establishment of a logistics network when it is uncertain how a company’s distribution strategy will evolve? What is the best configuration of a distribution network that will most likely have to be altered in the future? Today’s business environment is turbulent, and operating conditions for firms can take a turn for the worse at any moment. This fact can and often does influence companies to occasionally expand or contract their distribution networks. For most companies operating in this chaotic business environment, there is a continuous struggle between staying cost efficient and supplying adequate service. Establishing a distribution network which is flexible or easily adaptable is the key to survival under these conditions. This research begins to address the problem of locating facilities in a logistics network in the face of an evolving strategic focus through the implicit consideration of the uncertainty of parameters. The trade-off of cost and customer service is thoroughly examined in a series of multi-criteria location problems. Modeling techniques for incorporating service restrictions for facility location in strategic network design are investigated. A flexibility metric is derived for the purposes of quantifying the similarity of a set of non-dominated solutions in strategic network design. Finally, a multi-objective greedy random adaptive search (MOG) metaheuristic is applied to solve a series of bi-criteria, multi-level facility location problems

A note on hierarchical hubbing for a generalization of the VPN problem

Robust network design refers to a class of optimization problems that occur when designing networks to efficiently handle variable demands. In this context, Fréchette et al. (2013) recently explored hierarchical hubbing: a routing strategy involving a multiplicity of “hubs” connected to terminals and each other in a treelike fashion. For a natural generalization of the VPN problem, we prove a structural characterization implying that the optimal hierarchical hubbing solution can be found efficiently, and relate this to a “Generalized VPN Conjecture”