Investment in Transportation Network Capacity Under Uncertainty: Simulated Annealing Approach

A model of investment planning for transportation networks is formulated. The model seeks to maximize expected system capacity subject to uncertainty that will occur in the future demand pattern and with a limited budget for investment. Simulated annealing is used to solve the investment planning problem. A case study of a simplified version of the western U.S. double-stack container network is included to illustrate the application of the model.