Stochastic Survivable Network Design Problems

We consider survivable network design problems under a two-stage stochastic model with recourse and finitely many scenarios (SSNDP). We propose two new cut-based formulations for SSNDP based on orientation properties and show that they are stronger than the undirected cut-based model. We use a two-stage branch&cut algorithm for solving the decomposed model to provable optimality. In order to accelerate the computations, we suggest a new cut strengthening technique for the decomposed L-shaped optimality cuts that is computationally fast and easy to implement. Computational experiments show that our cut strengthening approach significantly reduces the number of iterations required and the computational running time.