4OR-Q J Oper Res

DOI 10.1007/s10288-016-0335-x

PHD THESIS

Models and algorithms for extended network design

Alessandro Hill

Springer-Verlag Berlin Heidelberg 2016

This is a summary of the authors (an Italian citizen) Ph.D. thesis supervised by Stefan
Vo defended on April 12 in 2016 at the Faculty of Business Administration of the
University of Hamburg. The thesis is written in English and is available from the
author upon request at alessandro.hill@uai.cl.
In this dissertation, models and algorithms for a class of emerging network design
problems are studied which are motivated by integrated decision making. Different
classical network optimization models are combined within more general extended net-
work design models. Their solutions essentially generalize different network topolo-
gies that are associated with the base models. More detailed, trees, cycles and stars
are allowed to be used in centralized bi-level models. As a consequence, we utilize a
major optimization potential, which arises when considering the base model decisions
simultaneously, rather than separately. Applications are not only found in telecommu-
nications, but also, e.g., in routing-based transportation, logistics and manufacturing.
We present efficient metaheuristic, matheuristic and exact solution approaches and
study their computational performance.
The overall objective of the considered models is the minimization of the net-
work cost measured as the sum of the edge costs and eventual facility installation
costs. Solution networks are required to connect predefined customer nodes to a given
central node, or depot. Steiner nodes can be used that represent optional intermedi-
ate points. We consider three base topologies that serve as building blocks for the
extended models. The Steiner tree problem (STP), vehicle routing problems (VRPs)
and assignment problems. The studied problems resulting from their combination are
the connected facility location problem (ConFLP), the multi-depot ring star problem
(MRSP) and the capacitated ring tree problem (CRTP). The CRTP is introduced in
this thesis and generalizes both, the tree-based STP and cycle-based VRP variants,
including the classical traveling salesman problem. The MRSP even allows ring star
structures originating from different given depot locations. Furthermore, the MRSP
and the CRTP incorporate reliable ring-based network structures under capacity con-
straints which are crucial in many telecommunication applications. The corresponding
network topologies are tree stars (ConFLP), ring stars (MRSP) and ring trees (CRTP).

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 A. Hill

To solve the network optimization problems, different types of methodology are

applied. Firstly, metaheuristics based on the exploration of problem tailored neigh-
borhoods are presented that efficiently compute solutions for the different models.
Secondly, mathematical programming based algorithms are elaborated for the MRSP
and the CRTP which are shown to be capable of handling the high structural com-
plexity for small instances. The incorporation of problem specific cutting planes and
the integration of the heuristics above turns out to significantly reduce the obtained
optimality gaps for larger instances. Thirdly, to cope with the hardness of the mod-
els due to their advanced network structures, new mathematical programming based
heuristics are developed in this dissertation. These are based on the improvement of an
existing network by repeatedly solving suitable refinement models to optimality. We
identify techniques to use the exact methods developed in this work for the MRSP to
be applied to refine a MRSP solution, resulting in high quality solutions for medium
sized instances. For the CRTP, we embed this approach into a mathematical formu-
lation of the problem itself. Additionally, generalized local branching based methods
are introduced to facilitate a structured exploration of the solution space. Through this
synthesis of mathematical programming and iterated search, we obtain outstanding
results compared to state-of-the-art literature methods. These techniques are exten-
sively tested for the considered models but can be adapted in a natural way for many
kinds of problems in combinatorial optimization.

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