Nothing Special   »   [go: up one dir, main page]
Skip to main content
Springer Nature Link
Log in

Financial Optimization Models in Data Networks*

  • Published:
Journal of Global Optimization Aims and scope Submit manuscript

Abstract

In a competitive market investors in a data network need to give utmost considerations on profitability. They must have clear picture of the size, growth rate and demand for different services. However, the investors’ budget may be limited, and therefore the speed at which the network is rolled out, must be carefully planned to ensure that they can meet profitability targets. We model first the roll out order as combinatorial optimization problems and then extend them as continuous optimization problems. We then implement these models in a practical problem. Numerical studies suggested that the optimization problems have multiple local minima. Therefore, a global optimization technique is used to obtain the global minimum for the continuous variable problem and a combinatorial optimization technique is used to solve the discrete variable problem. Optimal financial indicators are obtained to assess the commercial viability of the network. Finally, we demonstrate that the solution of these optimization problems can provide an investment policy to the investors in data networks.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  1. Ali, M.M., Opermann, C., Thomas B. and Walmarans, L. (2003), Optimal placement of backbone structures in a rural telecommunication network. In: Optimization and Industry: New Frontiers, Pardalos, P. and Korotkich, V. (eds.), Kluwer Academic Publishers, pp. 241–257.

  2. M.M. Ali (2006) ArticleTitleGlobal optimization models in data networks-a case study Computers and Operations Research 33 IssueID5 1437–1458 Occurrence Handle10.1016/j.cor.2004.09.036

    Article  Google Scholar 

  3. Sydsaeter, K. and Hammond, P.J. (1997), Mathematics for Economic Analysis, Prentice-Hall.

  4. Weston, J.F. (2001), Finance and Accounting for Non-financial Managers, McGraw-Hill.

  5. Nocedal, J. and Wright, S.J. (1999), Numerical Optimization, Springer Verlag.

  6. Hull, J.C. (1995), Introduction to futures and options markets, Prentice Hall.

  7. Network Solution Group. Alcatel Altech Telecoms, South Africa, private communication.

  8. E.H.L. Aarts J.H.M. Korst (1989) Simulated Annealing and Boltzmann Machines Wiley Chichester

    Google Scholar 

  9. S. Kirkpatrick C.D. Gelatt M.P. Vecchi (1983) ArticleTitleOptimization by simulated annealing Science 220 671–680

    Google Scholar 

  10. P. Kaelo M.M. Ali (2006) ArticleTitleA numerical study of some modified differential evolution algorithms European Journal of Operations Research 169 IssueID3 1176–1184 Occurrence Handle10.1016/j.ejor.2004.08.047

    Article  Google Scholar 

  11. R. Storn K. Price (1997) ArticleTitleDifferential evolution – a simple and efficient heuristic for global optimization over continuous spaces Journal of Global Optimization 11 341–359 Occurrence Handle10.1023/A:1008202821328

    Article  Google Scholar 

  12. A. Dekkers E.H.L. Aarts (1991) ArticleTitleGlobal Optimization Simulated Annealing Mathematical Programming 50 367–393 Occurrence Handle10.1007/BF01594945

    Article  Google Scholar 

  13. M.M. Ali C. Storey (1997) ArticleTitleAspiration based simulated annealing algorithm Journal of Global Optimization 11 181–191 Occurrence Handle10.1023/A:1008202703889

    Article  Google Scholar 

  14. H.W.J. Lee M.M. Ali K. Wong (2004) ArticleTitleGlobal optimization for a class of optimal discrete-valued control problem. Dynamics of Continuous, Discrete and Impulsive Systems, Series B 11 IssueID6 735–756

    Google Scholar 

  15. M.M. Ali A. Törn (2004) ArticleTitlePopulation set based global optimization algorithms: some modifications and numerical studies Computers and Operations Research 31 1703–1725 Occurrence Handle10.1016/S0305-0548(03)00116-3

    Article  Google Scholar 

  16. The Reserve Bank of South Africa. www.reservebank.co.za.

Download references

Author information

Authors and Affiliations

  1. School of Computational and Applied Mathematics, Witwatersrand University, Private Bag-3, Wits-2050, Johannesburg

    M. M. Ali

Authors
  1. M. M. Ali
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to M. M. Ali.

Additional information

*This network is a combined telephone and data network such as VIP (Voice over Internet Protocol).

M. M. Ali: Visitor at the Institute for Mathematics and its Applications, University of Minnesota, USA.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Ali, M.M. Financial Optimization Models in Data Networks*. J Glob Optim 35, 27–52 (2006). https://doi.org/10.1007/s10898-005-1656-z

Download citation

  • Received:

  • Accepted:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10898-005-1656-z

Keywords

Search

Navigation