Many problems arising in traffic planning can be modelled and solved u
sing discrete optimization. We will focus on recent developments which
were applied to large scale real world instances. Most railroad compa
nies apply a hierarchically structured planning process. Starting with
the definition of the underlying network used for transport one has t
o decide which infrastructural improvements are necessary. Usually, th
e rail system is periodically scheduled. A fundamental base of the sch
edule are the lines connecting several stations with a fixed frequency
. Possible objectives for the construction of the line plan may be the
minimization of the total cost or the maximization of the passengers'
s comfort satisfying certain regulations. After the lines of the syste
m are fixed, the train schedule can be determined. A criterion for the
quality of a schedule is the total transit time of the passengers inc
luding the waiting time which should be minimized satisfying some oper
ational constraints. For each trip of the schedule a train consisting
of a locomotive and some carriages is needed for service. The assignme
nt of rolling stock to schedule trips has to satisfy operational requi
rements. A comprehensible objective is to minimize the total cost. Aft
er all strategic and tactical planning the schedule has to be realized
, Several external influences, for example delayed trains, force the d
ispatcher to recompute parts of the schedule on-line. (C) 1997 The Mat
hematical Programming Society, Inc. Published by Elsevier Science B.V.