Revenue optimization of B-ISDN networks

We consider the optimization of routing in a broadband ISDN network through the maximization of the revenue generated by the network. Two types of calls are offered to the network with different holding times and bandwidths. The routing is alternative routing and load sharing. First we state the Kuhn-Tucker conditions and show how they provide a simple routing rule based on equal marginal net revenue. We then proposed two-stage decomposition algorithm for optimizing the routing which requires a flow-deviation stage combined with the solution of a linear system of equations. We obtain simple expressions for the net path revenues and the corresponding optimal routing rule. We summarize numerical results related to the convergence of the algorithm and the structure of the optimal routing