Optimal Capacity Allocation and Performance Analysis of Communication Networks

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In this paper, we present a stochastic model for optimizing capacity allocation in Communication Networks (CNs) with a loss rate constraint, a profit shortfall risk and a penalty cost. The model is proposed for offline traffic engineering optimization, taking a centralized view of bandwidth allocation, performance control and risk of profit shortfall. First, we present an analysis of the capacity allocation problem to derive the optimal bandwidth capacity with a loss rate constraint. Due to the random traffic load, there exists a risk of CN profit shortfall. We use a mean-variance approach to analyze the risk averseness in CNs and we also derive the optimal bandwidth capacity with risk averseness. Second, we present an analysis of the capacity allocation problem to derive the optimal bandwidth capacity with a penalty cost. Finally, numerical results are shown to reveal the impacts of loss rate constraint, risk averseness and penalty cost on the CNs' performance. The results presented in this paper reveal insights for CNs' design and planning.

identifier:110004627552

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