Application of Shadow Price in Capacity Expansion of State Dependent Routing



A. Rayes
Bellcore
444 Hoes Lane
Piscataway, NJ 08854
Email: rayes_AT_cc.bellcore.com

P.S. Min
Department of Electrical Engineering, Washington University,
St. Louis, MO 63130
Email: psm_AT_ee.wustl.edu



Abstract
We develop a capacity expansion method for state dependent routing which utilizes the concept of shadow price. To cope with the computational complexity which is inherent with the capacity expansion process, special forms of fixed point iteration are developed for network blocking evaluation. The proposed capacity expansion method is illustrated through the example of a well known state dependent routing, namely Least Busy Alternate Routing. We verify the method in simulated networks and the resulting network cost is seen to be quite close to the ones derived from the methods with much higher computational complexity. The proposed method also results in a network design that satisfies the prescribed network blocking probability very accurately.

JNSM: Vol. 4, No. 1, 1996 Application of Shadow Price in Capacity Expansion of State Dependent Routing [Vol. 4, No. 1, 1996]



NOTE: only abstract of paper available on-line

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