Cost modelling and validation in network optimization

Paper

Addie, Ronald G., Peng, Yu, Albdair, Mostfa, Xing, Chang, Fatseas, David and Zukerman, Moshe. 2015. "Cost modelling and validation in network optimization." 25th International Telecommunication Networks and Applications Conference (ITNAC 2015). Sydney, Australia 18 - 20 Nov 2015 United States. https://doi.org/10.1109/ATNAC.2015.7366782
Paper/Presentation Title

Cost modelling and validation in network optimization

Presentation TypePaper
AuthorsAddie, Ronald G. (Author), Peng, Yu (Author), Albdair, Mostfa (Author), Xing, Chang (Author), Fatseas, David (Author) and Zukerman, Moshe (Author)
Journal or Proceedings TitleProceedings of the 25th International Telecommunication Networks and Applications Conference (ITNAC 2015)
Number of Pages7
Year2015
Place of PublicationUnited States
ISBN9781467393485
Digital Object Identifier (DOI)https://doi.org/10.1109/ATNAC.2015.7366782
Web Address (URL) of Paperhttp://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=7366782
Conference/Event25th International Telecommunication Networks and Applications Conference (ITNAC 2015)
Event Details
25th International Telecommunication Networks and Applications Conference (ITNAC 2015)
Event Date
18 to end of 20 Nov 2015
Event Location
Sydney, Australia
Abstract

There are many costs associated with the build- ing and running a telecommunications network, both capital (CAPEX) and operational (OPEX) costs. On the one hand, complex routing schemes activated in multi-layer networks, like MPLS, logically imply assignment of costs to a collection of
modules, from more than one layer, so defining the cost model is a non-trivial task. On the other hand, optimization methods based on prices for sending packets via different paths, which include methods using shortest path as a design principle, require a cost model to be precise, in order to achieve a correct solution. A well-defined cost model enables us to analyze and check costs for each layer and for each subsystem within a layer, and provides a step-by-step procedure for validation of prices. To guarantee the correctness of the defined cost model, we produce a well-structured report which confirms the validity of prices and of the total cost. The criteria of the validation of the cost model is that the total cost of the network when calculated from the prices to be attributed to the traffic is equal to the total network cost (CAPEX + OPEX) less any discounts. This validation process is similar to double-entry bookkeeping which is common in the business world and which enables detection of errors in accounting systems. It is shown that the requirement for validation justifies pricing based
optimization. We provide examples where the application of this concept in a multi-layer network design software tool ensures that optimization works correctly, and one example where prices are not valid and the optimization fails.

ANZSRC Field of Research 2020461305. Data structures and algorithms
Public Notes

© 2015 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes, creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.

Institution of OriginUniversity of Southern Queensland
Byline AffiliationsSchool of Agricultural, Computational and Environmental Sciences
City University of Hong Kong, China
University of Misan, Iraq
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