This paper shows the iterative approach to solving transit network design problem, particularly with variable transit demand under a given fixed total demand. Although recent studies, which use a simplified combinatorial search approach, showed their capability of building optimal transit networks and handling the complicated transit travel time characteristics, only this iterative approach is believed to properly handle the dynamic characteristics of the relationship between variable transit trip demand and optimal transit network design. Since transit demand depends on the configuration of the transit network and frequencies of the routes, this approach is more desirable for transit network planning than combinatorial approach. The basic approach generates the optimal transit network from the initial network, which requires the shortest in-vehicle travel time, through iterating the assignment procedure and the improvement procedure until there is no more improvement in the network. With variable transit demand, the modal split procedure is added to the basic model to generate the optimal transit network and to estimate transit demand simultaneously. This paper also shows the relationship between optimal transit network design and critical design inputs, such as transit operating speed, total demand size, and transfer penalty. As results of the analysis, synergistic effect of variable transit demand and the optimal transit network are discussed.
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