Provider selection and task allocation issues in networks with different QoS levels and all you can send pricing

Official URL: http://dx.doi.org/10.1016/j.dss.2006.10.008

We investigate an optimization problem a firmfaces when acquiring network capacity from multiple providers.We define two types of tasks the firm performs using data networks, and show that the time, bandwidth and quality requirements of each type are quite different. We formulate the associated problem as a cost minimization problem subject to quality and capacity requirements and offer multiple solution approaches. We analyze how different prices, quality and task distribution affect the optimal behavior of the firm.We also implement Generalized Bender's Decomposition to solve a relaxation of this problem in order to obtain a tight lower bound.