Optimal traffic engineering design for bandwidth allocation in communication networks

In this paper, we present an analysis on op- timization and risk analysis in Communication Networks (CNs) with a penalty function. The model is proposed for offline traffic engineering optimization with bandwidth allocation and performance analysis. First, we introduce a penalty function in the CN optimization model and derive the optimal bandwidth capacity. Then, we analyze the profit shortfall risk in the CN with mean-variance approach for two typical arrival processes of traffic demand, Poisson arrival process and uniform distribution arrival process. Finally, we give numerical results to show the impact of relationship between unit revenue and unit cost and penalty cost and compare the characters of these two arrival processes of traffic demand on the network performance.