Abstract
Given a network and a budget, the budget network design problem consists in selecting a subset of links that minimize the sum of multicommodity flow costs subject to the budget constraint. We propose a lower bound algorithm using a Lagrangean dual ascent method and approximate algorithms using information of Lagrangean relaxation solutions. The effectiveness of our algorithms is demonstrated in computational test problems with up to 75 nodes, 2775 links and 2775 commodities.
