Sparse dynamic discretization discovery via arc-dependent time discretizations

Abstract: While many time-dependent network design problems can be formulated as time-indexed formulations with strong relaxations, the size of these formulations depends on the discretization of the time horizon and can become prohibitively large. The recently-developed dynamic discretization discovery (DDD) method allows many time-dependent problems to become more tractable by iteratively solving instances of the problem on smaller networks where each node has its own discrete set of departure times. However, in the current implementation of DDD, all arcs departing a common node share the same set of departure times. This causes DDD to be ineffective for solving problems where all near-optimal solutions require many distinct departure times at the majority of the high-degree nodes in the network. Region-based networks are one such structure that often leads to many high-degree nodes, and their increasing popularity underscores the importance of tailoring solution methods for these networks. To improve methods for solving problems that require many departure times at nodes, we develop a DDD framework where the set of departure times is determined on the arc level rather than the node level. We apply this arc-based DDD method to instances of the service network design problem (SND). We show that an arc-based approach is particularly advantageous when instances arise from region-based networks, and when candidate paths are fixed in the base graph for each commodity. Moreover, our algorithm builds upon the existing DDD framework and achieves these improvements with only benign modifications to the original implementation.