In this paper, we study the link capacity assignment problem in packet-switched networks (CA problem) focusing on the case where link cost function is a piecewise linear concave function. This type of cost function arises in many communication network design problems such as those arising from developments in communication transmission technologies. It is already known that the method of link set assignment is applicable for solving the CA problem with piecewise linear convex cost function. That is, each link in the network is assigned to one of a group of specific sets, and checked for link set contradiction. By extending the method of link set assignment to the case of piecewise linear concave cost function, an important characteristic of the optimal solution of the CA problem is derived. Based on this characteristic, the non-differentiable link cost function can be treated as a differentiable function, and a heuristic algorithm derived from the Lagrange multiplier method is then proposed. Although it is difficult to determine the global optimum of the CA problem due to its non-convexity, it is shown by numerical results that the solution obtained from the proposed algorithm is very close to the global optimum. Moreover, the computation time is linearly dependent on the number of links in the problem. These performances show that the proposed algorithm is very efficient in solving the CA problem, even in the case of large-scale networks. key words: communication networks and services, packet-
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