A Simulated Annealing Algorithm for Unsplittable Capacitated Network Design

The Network Design Problem (NDP) is one of the important problems in combinatorial optimization. Among the network design problems, the Multicommodity Capacitated Network Design (MCND) problem has numerous applications in transportation, logistics, telecommunication, and production systems. The MCND problems with splittable flow variables are NP-hard, which means they require exponential time to be solved in optimality. With binary flow variables or unsplittable MCND, the complexity of the problem is increased significantly. With growing complexity and scale of real world capacitated network design applications, metaheuristics must be developed to solve these problems. This paper presents a simulated annealing approach with innovative representation and neighborhood structure for unsplittable MCND problem. The parameters of the proposed algorithms are tuned using Design of Experiments (DOE) method and the Design-Expert statistical software. The performance of the proposed algorithm is evaluated by solving instances with different dimensions from OR-Library. The results of the proposed algorithm are compared with the solutions of CPLEX solver. The results show that the proposed SA can find near optimal solution in much less time than exact algorithm.