Provider selection and task allocation issues in networks with different QoS
levels and all you can send pricing
Nihat Kasap, Haldun Aytug, S. Selcuk Erenguc
Decision Support Systems 43 (2007) 375–389
Abstract
We investigate an optimization problem a firm faces when acquiring network
capacity from multiple providers.We define two types of tasks the firm performs
using data networks, and show that the time, bandwidth and quality requirements
of each type are quite different. We formulate the associated problem as a cost minimization
problem subject to quality and capacity requirements and offer multiple solution
approaches.We analyze how different prices, quality and task distribution affect
the optimal behavior of the firm.We also implement Generalized Bender's Decomposition to solve a relaxation of
this problem in order to obtain a tight lower bound.
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Keywords: Quality of service; Sourcing; Telecommunications; Generalized
bender's decomposition; Bin packing
1. Introduction
1) Section 2 presents an overview of related research.
2) Section 3 describes our assumptions and the model. 3) Section 4 is devoted to finding a heuristic solution and a simple lower bound.
4) Section 5 discusses the development of a tight lower bound using the Generalized Bender's Decomposition procedure.
5) Section 6 presents our conclusions and future research directions.
2. Literature review
3. A provider selection model
3.2. Problem notation
4. Heuristic A
4.1. A lower bound (Problem P2)
4.3. Further analysis of the solution structures
5. A lower bound using the generalized benders decomposition
Generalized Benders Decomposition method (GBD)
5.1. Description of the generalized benders decomposition algorithm
a relaxed master problem (RMP)
5.2. A lower bound formulation for P1
5.3. Adaptation of the generalized benders decomposition to P3