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Network operators have to allocate connections fulfilling availability requirements stipulated in SLAs for a finite interval. However, modeling accurately the transient solution of repairable systems is still an open challenge. We study the SLA penalty scheme and propose a model to allocate connections with SLA requirements, maximizing the operator profit through a two-stage stochastic program. Our model considers the stochastic behavior of network components, correlation between failure/repair processes, the SLA finite duration, and the flexibility to allocate or reject a connection based on its commercial convenience. The model is designed for three different protection schemes: unprotected, dedicated backup and shared backup.
Date of Conference: 15-18 Oct. 2012