Topological design of centralized computer-communication networks is an important issue that has been investigated by a large number of researchers. Such networks typically involve a large number of terminals connected by low or medium speed lines to concentrators, which are then connected to a central computing site by high speed lines. This problem is known to be a very difficult one. In general, the design problem involves determining the following: (a) the numbers and locations of concentrators that are to be opened; (b) the topology of connecting user nodes to concentrations sites; and (c) determining the links between open concentrators and the central node. Since the overall design problem belongs to the class of problems that are NP Hard, most prior research has investigated ways in which to disaggregate the problem into several simpler problems that can be solved iteratively until a satisfactory solution is reached. The problem we solve is this research involves multipoint lines between terminals and concentrators, and dedicated lines between concentrators and the central node. This problem therefore combines features of concentrator location problems as well as local access network design problems. We utilize a Lagrangian heuristic designed to efficiently solve this problem with gaps ranging from 2.7 to 10.4% of the lower bound.
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