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Designing a New Service Overlay on a Carrier Network Using the Efficient Frontier
Abstract
The network carrier must utilize the full potential of existing physical infrastructure before any new investments can be considered. Much work has been done to develop optimal design methodologies that generate a “best” design but designs often have to be changed to meet operational considerations, potentially mitigating any optimization benefits. This work proposes to expand the optimal network design process by applying a process borrowed from Finance and Operations Research/Management Science literature known as the Efficient Frontier or production frontier analysis. Using this idea, a portfolio of designs differing in cost, and number, size and location of nodes will be developed and from that the efficient frontier will be defined. By comparing any subsequent design to the frontier, the network designer can have an understanding of the impact of changes in the design strategy to the long-term cost effectiveness.
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