The optimization problem of rearrangeable multihop lightwave networks is considered. The authors formulate the flow and wavelength assignment problem, when minimizing the maximum flow in the network, as a mixed integer optimization problem subject to linear constraints. The problem is decomposed into two independent subproblems, the wavelength assignment (or connectivity problem) and the flow assignment (or routing problem). A simple heuristic provides a meaningful formulation to the connectivity problem, in a form similar to a transportation problem. An algorithm is then proposed which finds a heuristic initial logical connectivity diagram and the corresponding routing, and then iterates from that solution by applying branch-exchange operations to the connectivity diagram. The algorithm was tested on illustrative traffic matrices for an 8 node network with two transmitters and two receivers per node, and an improvement in achievable throughput over the Perfect Shuffle interconnection pattern was shown in all cases.< <ETX xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">></ETX>