Alternating Policies For Non-Rearrangeable Networks

We consider the following particular version of the multilocation non-rearrangeable capacity expansion problem. We assume that demand at each of two locations must be satisfied without delay, that there are economies of scale in the expansion of capacity, and capacity at one - but not both – of the locations can be utilized to satisfy demand at the other location. We first investigate various properties of the optimal policy over an infinite horizon. Then, after restricting ourselves to studying the class of alternating policies, we provide a complete analytical treatment of the minimum-cost planning problem when the demand at each location is assumed to grow linearly with time. We also suggest applications of our results to the design of non-rearrangeable communication networks.