Hierarchical Ring Network Design Using Branch-and-Price

We consider the problem of designing hierarchical two layer ring networks. The top layer consists of a federal-ring which establishes connection between a number of node disjoint metro-rings in a bottom layer. The objective is to minimize the costs of links in the network, taking both the fixed link establishment costs and the link capacity costs into account. Hierarchical ring network design problems combines the following optimization problems: Clustering, hub selection, metro ring design, federal ring design and routing problems. In this paper a branch-and-price algorithm is presented for jointly solving the clustering problem, the metro ring design problem and the routing problem. Computational results are given for networks with up to 36 nodes.