Minimum cost routing for dynamic network models

This paper presents a heuristic technique which attempts to minimize the present worth of first costs (PWFC) needed to satisfy the growth in point‐to‐point flow requirements for a dynamic (in time) model of the long‐haul communications network which spans the United States. This extends earlier work on the design of static (in time) multicommodity flow networks in which each link cost function is a concave function of the link flow. The cost reduction techniques presented here are based upon the coupling between network structure, routing techniques, and economies of scale evident in transmission system costs. The technique does not change any circuit routings performed prior to the study interval. The network model studied is normative, not predictive, and cannot be used to predict the outcome of short range issues (e.g. ‐ impact of rate changes).