Distribution Expansion Problem: Formulation and Practicality for a Multistage Globally Optimal Solution

Despite numerous research efforts of the past 40 years in the area of distribution expansion, a clear definition of the problem, and a truly multistage formulation that addresses practical concerns is yet to be developed. In this paper, the problem is clearly defined and analyzed from a practical point of view. A directed graph minimum edge cost network flow modeling of the problem for a truly multistage formulation using mathematical programming that guarantees global optimality and addresses the noted deficiencies is proposed. The proposed formulation is implemented on small case studies under varying assumptions. Comparative analysis indicates the importance of improved expansion planning.