This paper considers the problem of designing a capacitated network wi
th a tree configuration (CTP). For a given set of nodes with their cap
acities, k types of link facilities with various characteristics, acid
installation cost for connecting each pair of nodes using each type o
f link facility, the problem is to find a tree network which satisfies
the given traffic requirements between all pairs of nodes and minimiz
es total installation cost. We formulate (CTP) as an integer programmi
ng problem using path variables. To solve the linear programming relax
ation which has exponentially many variables, we develop a polynomial-
time column generation procedure. Moreover, to tighten the formulation
, an efficient preprocessing procedure is devised and some classes of
valid inequalities are found. Using the results, we develop a branch-a
nd-cut algorithm with column generation where an efficient branching r
ule is adopted. Computational results show that the algorithm can solv
e practically-sized problems to optimality within a reasonable time.