This study introduces a distributed methodology for system optimal dynamic traffic assignment formulated using the cell transmission model (CTM). Using CTM increases the methodology’s accuracy in predicting link flows and its dynamics; however, it increases the computational complexity significantly. Our methodology is specifically designed to address this challenge and provide a balance between the quality of the solution and computational complexity while ensuring first-in-first-out (FIFO) queuing discipline. The methodology follows a receding horizon framework and distributes the network-level traffic assignment into several intersection-level sub-problems and solves them in parallel. Therefore, this heuristic significantly reduces the computational complexity and finds solutions in real-time. The distribution is achieved by relaxing coupling constraints among different sub-problems. The sub-problems coordinate their decisions with each other by sharing information and implementing it in the re-introduced constraints that were previously relaxed. This process was used to avoid infeasible solutions, reduce the likelihood of finding local solutions, and promote system-level optimality. The information that needs to be exchanged is estimated using CTM simulation runs. All optimal sub-problem solutions are implemented in network-level CTM simulations, and cell occupancies and flows are obtained. The FIFO discipline is also approximated in CTM. We have tested the methodology in networks of 20 and 40 intersections with 15 and 25 origin-destination pairs, respectively, under various demand levels, and compared the performance with a benchmark approach capable of finding the optimal solutions. The maximum observed optimality gap in case studies with 20 and 40 intersections was 3.1%, and the solutions were found in real-time in all scenarios.
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