This work is focused on the analysis of the survivable capacitated network
design problem. This problem can be stated as follows: Given a supply netwo
rk with point-to-point traffic demands, specific survivability requirements
, a set of available capacity ranges and their corresponding discrete costs
for each are, find minimum cost capacity expansions such that these demand
s can be met even if a network component fails. Solving this problem consis
ts of selecting the links and their capacity, as well as the routings for e
ach demand in every failure situation. This type of problem can be shown to
be NP-hard. A new linear mixed-integer mathematical programming formulatio
n is presented. An effective solution procedure based on Lagrangean relaxat
ion is developed. Comparison heuristics and improvement heuristics are also
described. Computational results using these procedures on different sizes
of randomly generated networks are reported.