Asynchronous transfer mode (ATM) networks play an important role in support of distributed applications and modern corporate systems. The applications that use these architectures transfer high volumes of data in high-speed bursts and have stringent delay requirements. To address these needs, network managers seek cost efficient network solutions that provide network capacity sufficient to support high-speed applications. In this paper we present a new formulation and solution procedure for designing ATM networks to support corporate applications. Given the locations of the application servers and multiple clients we would like to design a minimum cost ATM network by which the clients can access the servers. Most of the previous work done in this area separates the problem into a routing problem (virtual circuit routing) and an assignment (virtual path assignment) problem. Thus, the solutions tend to be sub-optimal in the combined problem. This research optimizes virtual path (VP) assignment and virtual circuit (VC) routing simultaneously. We formulate the combined problem explicitly and develop an effective solution method. The solution method provides the designer with virtual paths and virtual circuits over which the actual communication takes place. Computational results are provided.
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