Designing and constructing networks under uncertainty in the construction stage: Definition and exact algorithmic approach

The present work proposes a novel Network Optimization problem whose core is to combine both network design and network construction scheduling under uncertainty into a single two-stage robust optimization model. The first-stage decisions correspond to those of a classical network design problem, while the second-stage decisions correspond to those of a network construction scheduling problem (NCS) under uncertainty. The resulting problem, which we will refer to as the Two-Stage Robust Network Design and Construction Problem (2SRNDC), aims at providing a modeling framework in which the design decision not only depends on the design costs (e.g., distances) but also on the corresponding construction plan (e.g., time to provide service to costumers). We provide motivations, mixed integer programming formulations, and an exact algorithm for the 2SRNDC. Experimental results on a large set of instances show the effectiveness of the model in providing robust solutions, and the capability of the proposed algorithm to provide good solutions in reasonable running times.