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This study investigates the problem of scheduling data bursts in a wavelength division multiplexing (WDM) optical network called time-domain wavelength interleaved network (TWIN) I. Widjaja et al. (2003). Due to the innovative architecture of the TWIN, four issues are essential in the design of the traffic scheduling: there are no transmitting/receiving conflicts; propagation delays are observed; throughput is maximized and latency is kept as small as possible. In this paper, we introduce a novel topology-based dynamic scheduling (TBDS) framework, in which we deal with not only the transmitting/receiving conflicts, but also the network topology and link propagation delays. The consideration of network topology will take advantage of the interleaving opportunity in the TWIN to improve efficiency. We formulate the problem into an integer linear programming (ILP). We present the framework and simulation-based analysis of the system performance. We show that the TBDS algorithm achieves the same maximum throughput as the algorithm of K. Ross et al., (2003), but has relatively lower complexity and significantly less queuing delays.