NDLI: Stochastic traffic engineering for demand uncertainty and risk-aware network revenue management

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Stochastic traffic engineering for demand uncertainty and risk-aware network revenue management

Content Provider	ACM Digital Library
Author	Mitra, Debasis
Abstract	Stochastic traffic engineering for demand uncertainty and risk-aware network revenue management We present a stochastic traffic engineering framework for optimizing bandwidth provisioning and route selection in networks. Traffic demands are uncertain and specified by probability distributions, and the objective is to maximize a risk-adjusted measure of network revenue that is generated by serving demands. Considerable attention is given to the appropriate measure of risk in the network model. We also advance risk-mitigation strategies. The optimization model, which is based on mean-risk analysis, enables a service provider to maximize a combined measure of mean revenue and revenue risk. The framework is intended for off-line traffic engineering, which takes a centralized view of network topology, link capacity and demand. We obtain conditions under which the optimization problem is an instance of convex programming. We study the properties of the solution and show that it asymptotically meets the stochastic efficiency criterion.In our numerical investigations we illustrate the impact of demand uncertainty on various aspects of the optimally traffic engineered solutions. The service provider's tolerance to risk is shown to have a strong influence on the traffic engineering and revenue management decisions. We develop the efficient frontier, which is the set of Pareto optimal pairs of mean revenue and revenue risk, to aid the service provider in selecting its operating point.
Starting Page	1
Ending Page	1
Page Count	1
File Format	PDF
ISBN	1581138733
DOI	10.1145/1005686.1005687
Language	English
Publisher	Association for Computing Machinery (ACM)
Publisher Date	2004-06-10
Publisher Place	New York
Access Restriction	Subscribed
Content Type	Text
Resource Type	Article

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1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
3	National Digital Library of India Office, Indian Institute of Technology Kharagpur	The administrative and infrastructural headquarters of the project	Dr. B. Sutradhar bsutra@ndl.gov.in
4	Project PI / Joint PI	Principal Investigator and Joint Principal Investigators of the project	Dr. B. Sutradhar bsutra@ndl.gov.in Prof. Saswat Chakrabarti will be added soon
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