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Discrete Dynamics in Nature and Society
Volume 2014 (2014), Article ID 739656, 16 pages
http://dx.doi.org/10.1155/2014/739656
Research Article

Dynamic Network Design Problem under Demand Uncertainty: An Adjustable Robust Optimization Approach

1MOE Key Laboratory for Urban Transportation Complex Systems Theory and Technology, Beijing Jiaotong University, Beijing 100044, China
2Institute of System Science, School of Traffic and Transportation, Beijing Jiaotong University, Beijing 100044, China

Received 31 October 2013; Accepted 18 December 2013; Published 17 February 2014

Academic Editor: Huimin Niu

Copyright © 2014 Hua Sun et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

This paper develops an adjustable robust optimization approach for a network design problem explicitly incorporating traffic dynamics and demand uncertainty. In particular, a cell transmission model based network design problem of linear programming type is considered to describe dynamic traffic flows, and a polyhedral uncertainty set is used to characterize the demand uncertainty. The major contribution of this paper is to formulate such an adjustable robust network design problem as a tractable linear programming model and justify the model which is less conservative by comparing its solution performance with the robust solution from the usual robust model. The numerical results using one network from the literature demonstrate the modeling advantage of the adjustable robust optimization and provided strategic managerial insights for enacting capacity expansion policies under demand uncertainty.