WS network design problem with nonlinear pricing solved by hybrid algorithm

Abstract

The aim of the paper is to introduce a wait-and-see (WS) reformulation of the transportation network design problem with stochastic price-dependent demand. The demand is defined by hyperbolic dependency and its parameters are modeled by random variables. Then, a WS reformulation of the mixed integer nonlinear program (MINLP) is proposed. The obtained separable scenario-based model can be repeatedly solved as a finite set of MINLPs by means of integer programming techniques or some heuristics. However, the authors combine a traditional optimization algorithm and a suitable genetic algorithm to obtain a hybrid algorithm that is modified for theWS case. The implementation of this hybrid algorithm and test results, illustrated with figures, are also discussed in the paper.