A model for nonlinear cost problems in optimal design of communication networks

In this paper we present a solution strategy for nonlinear cost problems in communication network design. The cost function of the traffic on each link is modelled as piecewise constant (sequence of steps). It is shown that this model can be converted to one that describes the problem in a new way, where each single link with a complex cost function is replaced by multiple links, each with a constant cost and a capacity limit.