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Joint Optimization of Road Classification and Road

Capacity for Urban Freight Transportation Networks


Yipeng Ye, Ph.D. 1; Hua Wang, Ph.D. 2; Xiaoning Zhang, Ph.D. 3; and Rui Li, Ph.D. 4
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Abstract: In previous studies, almost all urban network design models/methods made attempts to optimize transportation system perfor-
mance, such as minimizing road traffic congestion, by determining optimal road capacity expansion schemes, with the assumption of inde-
structible road infrastructure. However, road infrastructure definitely deteriorates over time, and needs periodic maintenance and repairs. This
paper proposes a bilevel programming model for the urban freight transportation network design problem (UFTNDP) by taking into account
the heterogeneity of road classifications and road damages from the perspective of road maintenance. The model aims to improve network
performance as much as possible by determining an optimal joint scheme of road capacities and classifications. At the upper level, road
planning aims to minimize total system cost by determining a joint optimal scheme of road capacities and road classifications. The lower level
is a traffic assignment problem that characterizes network users’ path choice behavior. We then propose an improved system optimum (SO)
relaxation–based method to solve the optimization model. Numerical examples validated the developed model and tested the computational
efficiency of the proposed algorithm. Numerical results revealed that (1) the improved solution algorithm performs better, because it saves
97.3% of computational time compared with the original SO relaxation–based method; (2) the algorithm has the potential to be extended to
solving a general discrete network design problem; and (3) a simultaneous optimization of road classification and capacity works better in
improving system performance of an urban freight transportation network. DOI: 10.1061/JTEPBS.0000446. © 2020 American Society of
Civil Engineers.
Author keywords: Discrete network design problem; Bilevel programming model; Road classification; User equilibrium; Improved
system optimum (SO) relaxation–based algorithm.

Introduction studies have proposed NDPs to drive users’ route choices and
achieve better network performance.
Urban transportation plays an important role in promoting the eco- Although there are a vast number of NDP publications in the
nomic development of and social activities in cities. People often literature, almost all previous studies assumed a unified road qual-
regard road congestion as one of the most serious problems in ur- ity for all roads in the transportation network and overlooked the
ban transportation, and one that can be alleviated by building new heterogeneity of road damage maintenance costs. The differences
links and upgrading or enhancing existing roads. Such road capac- in road classifications and their actual conditions and qualities is
ity expansion is defined as a network design problem (NDP) in the apparent in practice. Bumpy Roads Ahead (2018) reported that
literature. It usually is formulated as a bilevel programming (BLP) about one-third of major urban roads in the US were poorly paved.
model, in which the upper-level planner aims to improve transpor- Road damage and maintenance costs are very important for road-
tation system performance by implementing optimal road capacity network planning and operation. For example, road damage creates
expansion schemes subject to investment constraints, and the lower- extra travel costs for road users. Martin and Thoresen (2015) re-
level users strive to optimize their routing decisions so as to minimize vealed that moving on damaged roads is estimated to cost US mo-
respective travel costs. According to different traffic assignment torists $80 billion in additional annual operating costs and vehicle
principles, lower-level problems can be differentiated further as user- repairs. Quite a few studies and reports also have pointed out that
equilibrium (UE) problems, stochastic user-equilibrium (SUE) prob- road maintenance costs cannot be negligible. Dueker and Fischer
lems, and so forth. Based on traffic assignment principles, many (2003) indicated that road investment was about 1.6% of GDP dur-
1
ing 1963–1984 and that road maintenance costs accounted for a
Lecturer, School of Economics and Management, Wuyi Univ., large part of road expenses during this period. Bumpy Roads Ahead
Guangdong 529020, China. Email: yeyipeng@foxmail.com
2 (2018) found that the backlog in America’s road and highway reha-
Senior Research Fellow, Dept. of Civil and Environmental Engi-
neering, National Univ. of Singapore, Singapore 117576, Singapore bilitation was $419.5 billion and that the annual investment in road
(corresponding author). ORCID: https://orcid.org/0000-0002-7150-5247. maintenance should be increased to $61 billion to improve the con-
Email: hwang191901@gmail.com dition of America’s roads and highways.
3
Professor, School of Economics and Management, Tongji Univ., Road damage is caused mainly by heavy goods vehicles (HGVs)
Shanghai 200092, China. Email: cexzhang@tongji.edu.cn and highly depends on their loads (Dodoo and Thorpe 2005). The
4
Associate Professor, College of Civil and Transportation Engineering, severity of road damage is related to vehicle loads and road clas-
Hohai Univ., Nanjing 210098, China. ORCID: https://orcid.org/0000-0001 sifications. The relationship between vehicle loads and road dam-
-9692-3771. Email: lirui2012@hhu.edu.cn
age has been investigated. Highway Research Board (1962) found
Note. This manuscript was submitted on April 3, 2020; approved on
June 8, 2020; published online on August 14, 2020. Discussion period open that road damage cost is proportional to the fourth power of the
until January 14, 2021; separate discussions must be submitted for indivi- total weight of the vehicle. However, road classification also is an
dual papers. This paper is part of the Journal of Transportation Engineer- important factor, because marginal road damage cost by equivalent
ing, Part A: Systems, © ASCE, ISSN 2473-2907. standard axles and fixed damage cost manifest very differently

© ASCE 04020122-1 J. Transp. Eng., Part A: Systems

J. Transp. Eng., Part A: Systems, 2020, 146(10): 04020122


depending on road classification (Martin and Thoresen 2015). considered, and the road classification choice should be an
Road classification is practical in urban network design. He et al. important part of the urban freight transportation network
(2008) illustrated that road classification should be designed based design problem (UFTNDP). This paper addresses both these
on trip modes in urban areas, and analyzed road classification in the problems.
city of Changzhou, China. Therefore, it is necessary and imperative We examine at the development of solution algorithms for vari-
to incorporate road damage and road classification into the urban ous NDPs. The NDP solution algorithms in the literature can be
freight transportation network design. categorized into two classes, heuristic and metaheuristic methods,
Little existing network design research has taken into account and exact methods. There are quite a few efficient heuristics, in-
road classification and capacity simultaneously. This paper focused cluding particle swarm optimization (Wang et al. 2015), the genetic
on the discrete network design problem (DNDP) that determines algorithm (Wang et al. 2019), the decomposition method (Dou et al.
the optimal number of lanes and road classification for each can- 2019) and the augmented Lagrangian method (Meng et al. 2001).
didate link on the urban freight transportation network. Both private Exact methods include some classic global solution approaches for
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cars and freight trucks coexist on the transportation network. This NDPs, such as the branch-and-bound algorithm and the cutting
investigated (1) how to formulate a DNDP that incorporates road plane algorithm. For example, Leblanc (1975) developed a bilevel
classification and road damage, and also takes into account the programming model for the DNDP and proposed a branch-and-
routing behavior of the two types of network users; and (2) how bound algorithm to solve it. Farvaresh and Sepehri (2013) inves-
to design a tailored solution algorithm so as to efficiently solve tigated a similar problem to Leblanc (1975) and proposed a tighter
the proposed DNDP model. lower bound (LB) to improve the solution algorithm. Wang et al.
(2013) proposed a system optimum (SO) relaxation–based method
to solve the DNDP, in which a feasible solution that satisfies the SO
Literature Review principle is regarded as a lower bound of UE solutions, and suc-
The urban transportation network design problem is concerned cessive cutting planes may be added to increase this lower bound.
mainly with expanding existing links or building new ones so The main merit of this method is that it ensures a globally optimal
as to optimize network performance while accounting for trav- solution.
elers’ route choice behavior. If the capacity of candidate links Another branch of exact solution algorithms seeks to reformu-
is regarded as a continuous variable, then the NDP can be catego- late the NDP as an equivalent mixed-integer linear program (MILP)
rized further as a continuous network design problem (CNDP) via linearization approximation. After that, the equivalent MILP
(e.g., Liu and Wang 2015). In turn, if discrete variables of link can be solved by state-of-the-art commercial solvers (e.g., CPLEX
capacities, e.g., lane numbers, are considered, the problem falls and GUROBI) or advanced solution techniques. For instance,
into the category of the DNDP (e.g., Wang et al. 2013). In addi- Wang and Lo (2010) developed a linearized formulation to approxi-
tion, the mixed network design problem (MNDP) (e.g., Luathep mate a CNDP that can be solved by CPLEX. This method is widely
et al. 2011) takes into account both continuous and discrete de- used in solving NDPs (Wang and Zhang 2017, Wang et al. 2014).
cision variables of link capacity expansion. Farahani et al. (2013) Luathep et al. (2011) extended this to investigate a MILP formu-
gave a comprehensive survey of the literature and detailed lation for the MNDP. Liu and Wang (2015) used a stochastic UE to
discussions. reformulate the NDP as a MILP and solved it by using a range
Numerous studies have investigated the network design problem reduction technique. To the best of our knowledge, finding a fast
under different assumptions. If the imperfect rationality of users is global optimization algorithm for the DNDP remains an open
considered, then the SUE principle is a reasonable extension of the problem.
UE principle and can be adopted to formulate users’ route choice
behavior. Based on the SUE principle, Long et al. (2010) proposed
Objectives and Contributions
a network design model and a branch-and-bound–based method to
tackle the turning restriction design problem. Considering the multi- The first objective of this work was to develop an optimization
dimensional measures of network design strategy (NDS), some re- model for the UFTNDP and thus find a network design scheme
cent studies proposed multiobjective optimization models for the with an optimal number of lanes and road classifications for each
network design problem. Szeto et al. (2010) simultaneously consid- candidate link. The second objective was to propose an improved
ered social, economic, and environmental impacts on humans and SO relaxation–based solution algorithm for the proposed UFTNDP
proposed a multiobjective optimization model for the road-network model.
design problem. To achieve these goals, we first formulated the UFTNDP as a
In addition to the elements considered in existing network de- bilevel programming model. A road planner at the upper level op-
sign studies, road damage also is an important problem facing timizes the urban freight transportation network capacity expansion
freight networks. Moreno-Quintero (2006) pointed out that in terms scheme in terms of road classification and the number of lanes for
of road-network quality, the major impact of freight transportation each candidate link, whereas freight and auto users at the lower
is not congestion but rather road damage. Road damage is highly level make their respective route choices by following the UE prin-
dependent on road classification and the weights of freight trucks. ciple. This model is computationally challenging, because the bi-
Martin and Thoresen (2015) pointed out that marginal road damage level programming problem is a nonconvex programming problem.
cost caused by equivalent standard axles and fixed damage cost are Because heuristics and metaheuristics cannot guarantee a global
very different for various road classifications. Volovski et al. (2017) solution, we preferred the exact algorithm, and improved the one
indicated that the annual maintenance expense costs of roads highly proposed by Wang et al. (2013) from the perspective of searching
depend on road pavement types. strategy. Wang et al. (2013)’s SO relaxation–based method always
Although existing studies have considered different assump- generates a global solution to the DNDP. However, it always
tions and proposed various network design models for urban searches several nonoptimal NDS and cuts off only one in each
transportation networks, almost all network design models iteration, so it needs many iterations and takes a long time to con-
implicitly suppose that a road can never perish and will serve verge. We improved the SO relaxation–based method through a
users forever. As argued previously, road damage should be solver technique called solver callback, which can cut off multiple

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J. Transp. Eng., Part A: Systems, 2020, 146(10): 04020122


searched nonoptimal NDS in each iteration. It thus requires a very ya;n ∈ f0; 1g; ∀ a ∈ A2 ; n ∈ Na ð5Þ
limited number of iterations and less time to solve large-scale
problems.
This paper makes the following substantial contributions to the X X X
τ a;m;n xa;m ya;n ≤ B ð6Þ
literature. a∈A2 m∈Ma n∈N a
1. We propose a bilevel programming model for the UFTNDP to
determine the optimal road classification and number of lanes
where v = vehicle flow, which is controlled by lane parameter
for each candidate link. Existing studies have not considered the
vector y.
relationship between link travel time and road types. The pro-
The objective function Eq. (1) represents the total cost of the
posed model considers both travel time cost and road damage
urban transportation system, including road damage cost and travel
cost in order to pursue a reasonable NDS for an urban freight
cost. Constraint Eq. (2) means that exactly one road classification
transportation network. To the best of our knowledge, this is the
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can be chosen for each candidate link. Constraint Eq. (3) ensures
first urban transportation network design model that simultane-
that exactly one capacity can be chosen for each candidate link.
ously addresses travel time cost, road damage cost, and road
Constraints Eqs. (4) and (5) ensure that link level parameters xa;m
classification.
and lane parameters ya;n are binary decision variables. Constraint
2. We propose an improved SO relaxation–based method to solve
Eq. (6) guarantees that the road construction cost does not exceed
the UFTNDP model, which worked very well in the tested in-
the total budget.
stances. Moreover, it can be easily extended to solve a generic
Because objective function Eq. (1) and constraint Eq. (6) are
DNDP.
nonlinear, we introduce auxiliary variable za;m;n ¼ xa;m ya;n and re-
3. We also contribute some managerial insights. First, we found
place constraint Eq. (6) with equivalent linear constraints
that Braess’s paradox applies in numerical examples. This indi-
cates that larger link capacity expansion is not always better and X X X
that policy makers should optimize NDS carefully. Second, in τ a;m;n za;m;n ≤ B ð7Þ
addition to link capacity expansion, a proper choice of road clas- a∈A2 m∈M a n∈N a

sification for candidate links can help improve further the per-
formance of an urban freight transportation network.
za;m·n ≤ xa;m ; ∀ a ∈ A2 ; m ∈ M a ; n ∈ N a ð8Þ

Model Formulation za;m·n ≤ ya;n ; ∀ a ∈ A2 ; m ∈ M a ; n ∈ N a ð9Þ


The network design problem can be characterized as a Stackelberg
game between the road planner and network users. Unlike existing za;m·n ≥ xa;m þ ya;n − 1; ∀ a ∈ A2 ; m ∈ M a ; n ∈ N a ð10Þ
NDP studies, the system cost in this paper included road damage
cost and travel time cost. We assumed that road damage cost has
two parts: fixed cost, and damage cost by freight trucks. The fixed za;m·n ≥ 0; ∀ a ∈ A2 ; m ∈ M a ; n ∈ N a ð11Þ
cost is related to road classification and the number of lanes, which
can be seen as a fixed routine road maintenance cost. The damage
Because both xa;m and ya;n are binary variables, the auxiliary
cost from freight trucks is related to road classification and freight
variable za;m;n also is a binary variable. The equivalence can be
vehicle flow. This game can be formulated as a bilevel optimization
verified as follows:
model, in which the planner at the upper level determines the road
classifications and the capacities of candidate links to minimize the
total system cost of the urban freight transportation system, and the If xa;m ¼ 0 ⇒ za;m·n ¼ 0 derived by constraints Eqs:ð8Þ and ð11Þ
users choose routes to minimize their own total travel times. else if ya;n ¼ 0 ⇒ za;m·n ¼ 0 obtained by constraints Eqs:ð9Þ and ð11Þ
The road planner aims to minimize the total cost of the freight
transportation system. Thus, the upper-level programming can be else xa;m ¼ ya;n ¼ 1
formulated as follows: ⇒ za;m·n ¼ 1 actively bounded by constraints Eqs:ð8Þ−ð10Þ
X
min la ðcfixed
a þ cdam
a va Þ
F
x;y
a∈A1
In addition, we replace objective function Eq. (1) with the fol-
X X X  X
lowing equivalent objective function:
þ la xa;m a;m;n ya;n þ ca;m va
cfixed dam F
þα va ta ðva Þ X X X X
a∈A2 m∈Ma n∈N a a∈A1 min la ðcfixed
a þ cdam
a va Þ þ
F
la cfixed
a;m;n za;m;n
X X X x;y
a∈A1 a∈A2 m∈Ma n∈N a
þα xa;m ya;n va ta;m;n ðva Þ ð1Þ X X X
a∈A2 m∈Ma n∈N a þ a;m xa;m va þ α
la cdam F
va ta ðva Þ
a∈A2 m∈M a a∈A1
s.t. X X X
þα za;m;n va ta;m;n ðva Þ ð12Þ
X a∈A2 m∈M a n∈N a
xa;m ¼ 1; ∀ a ∈ A2 ð2Þ
m∈M a
The lower-level programming can be formulated as the follow-
X ing UE problem:
ya;n ¼ 1; ∀ a ∈ A2 ð3Þ
n∈N a
XZ va X X X Z va
min ta ðθÞdθ þ za;m;n ta;m;n ðθÞdθ ð13Þ
v
xa;m ∈ f0; 1g; ∀ a ∈ A2 ; m ∈ Ma ð4Þ a∈A1 0 a∈A2 m∈Ma n∈N a 0

© ASCE 04020122-3 J. Transp. Eng., Part A: Systems

J. Transp. Eng., Part A: Systems, 2020, 146(10): 04020122


s.t. vFa;s ≥ 0; ∀ a ∈ A; s ∈ D ð18Þ
va ¼ vFa þ vPa ; ∀a∈A ð14Þ
X X
vPa;s − vPa;s ¼ qPi;s ; ∀ i ∈ N; s ∈ D ð19Þ
va ≤ Uð1 − ya;0 Þ; ∀ a ∈ A2 ð15Þ a∈iþ a∈i−

X X X
vFa;s − vFa;s ¼ qFi;s ; ∀ i ∈ N; s ∈ D ð16Þ vPa ¼ vPa;s ; ∀a∈A ð20Þ
a∈iþ a∈i−
s∈D
X
vFa ¼ vFa;s ; ∀a∈A ð17Þ
s∈D
vPa;s ≥ 0; ∀ a ∈ A; s ∈ D ð21Þ
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where
8 P
>
> − DFrs i¼s
>
< r∈O
qFi;s ¼ F
Drs i¼r; ∀ i ∈ N; r ∈ O; s ∈ D
>
>
>
:0 otherwise
8 P
>
> − DPrs i¼s
>
< r∈O
qPi;s ¼ P
Drs i ¼ r; ∀ i ∈ N; r ∈ O; s ∈ D
>
>
>
:0 otherwise

Constraints Eqs. (7)–(11) ensure that the total construction cost s.t.
does not exceed the total budget. Objective function Eq. (13) X
represents the equilibrium of the freight trucks and private cars. vFa ¼ vFa;m ; ∀ a ∈ A2 ð25Þ
m∈Ma
Constraint Eq. (14) ensures aggregate flow conservation on each
link. Constraint Eq. (15) ensures that there is no flow on a candidate 0 ≤ vFa;m ≤ Uxa;m ; ∀ a ∈ A2 ; m ∈ M a ð26Þ
link if that link has not been constructed. Constraints Eqs. (16)–(18)
ensure freight vehicle flow conservation. Constraints Eqs. (19)–(21) va ¼ vFa þ vPa ; ∀a∈A ð27Þ
ensure private car flow conservation.
We reformulated both the upper- and lower-level programs as va ≤ Uð1 − ya;0 Þ; ∀ a ∈ A2 ð28Þ
equivalent mixed-integer convex programs (MICPs) to handle them
easily. Wang et al. (2013) used similar preprocessing. We intro- 0 ≤ va;m;n ≤ Uza;m;n ; ∀ a ∈ A2 ; n ∈ N a ð29Þ
duced new variables va;m;n , ∀a ∈ A2 ; m ∈ M a ; n ∈ N a , vFa;m , and X X
∀a ∈ A2 ; m ∈ M a ; va;m;n denotes vehicle flow on link a if link a va ¼ va;m;n ; ∀ a ∈ A2 ð30Þ
is level m with n lane(s); vFa;m denotes freight vehicle flow on link a m∈M a n∈N a
if link a is type m. The bilevel programming Eqs. (1)–(21) can be
reformulated as follows. with constraints Eqs: ð16Þ–ð21Þ ð31Þ
For the original problem (OP), the upper-level programming is
Define
X X X X
la ðcfixed þ cdam Ωx;y
a va Þ þ
F
min a la cfixed
a;m;n za;m;n
x;y
a∈A1
X X X
a∈A2 m∈Ma n∈N a ≔fðx; yÞ∶x and y satisfy constraints Eqs: ð2Þ − ð5Þ and ð7Þ − ð11Þg
þ la cdam F
a;m va;m þα va ta ðva Þ
a∈A2 m∈M a a∈A1 Ωv ðx; yÞ
X X X
þα va;m;n ta;m;n ðva;m;n Þ ð22Þ ≔ fv∶v satisfies constraints Eqs: ð25Þ − ð31Þ under NDSðx; yÞg
a∈A2 m∈M a n∈N a
The bilevel programming can be abbreviated as follows:
X X X X
s:t: Eqs. ð2Þ−ð5Þ and ð7Þ−ð11Þ ð23Þ min la ðcfixed
a þ cdam
a va Þ þ
F
la cfixed
a;m;n za;m;n
ðx;yÞ∈Ωx;y
a∈A1 a∈A2 m∈Ma n∈N a
The lower-level programming is X X X
þ a;m va;m þ α
la cdam F va ta ðva Þ
XZ X X XZ
a∈A2 m∈M a a∈A1
va va;m;n X X X
min ta ðθÞdθ þ ta;m;n ðθÞdθ ð24Þ þα va;m;n ta;m;n ðva;m;n Þ ð32Þ
v 0 0
a∈A1 a∈A2 m∈Ma n∈N a a∈A2 m∈M a n∈N a

© ASCE 04020122-4 J. Transp. Eng., Part A: Systems

J. Transp. Eng., Part A: Systems, 2020, 146(10): 04020122


where v solves the following UE problem: The difference between the OP and the RP is that the link flow
X Z va X X XZ va;m;n
v ∈ Ωv ðx; yÞ in the RP and v ∈ ΩUE v ðx; yÞ in the OP. Because
min ta ðθÞdθ þ ta;m;n ðθÞdθ ΩUE
v ðx; yÞ ⊆ Ωv ðx; yÞ, the RP is a relaxation of the OP. It follows
v∈Ωv ðx;yÞ 0 0
a∈A1 a∈A2 m∈Ma n∈N a that the solution of the RP can help determine a lower bound of the
ð33Þ OP. The formal description of the SO relaxation–based method in
our proposed model is shown below.
In the UE problem [Eq. (33)], aggregate link flows va are 1. Define a set Ω̄x;y ¼ ∅ that will contain all the generated solu-
unique, because the UE problem is strictly convex for va. Once tions. Define the upper bound UB ≔ þ∞, incumbent solution
aggregate link flows are given, the UE problem becomes a linear ðxopt ; y opt Þ, relative optimality tolerance ε ≥ 0.
optimization problem for vFa and vPa . Therefore, there may be 2. Solve the RP with the following constraints by dynamic outer
multiple solutions for vFa and vPa . When there exist multiple so- approximation method (which is introduced in the dynamic
outer approximation method):
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lutions to the lower level traffic assignment problem, we here


focus on the best case where its corresponding traffic pattern
could ensure the most favorable system performance among X X X
all solutions. This implies that our model is indeed to tackle a ð1 − x̄a;m Þxa;m þ x̄a;m ð1 − xa;m Þ
min-min optimization problem. a∈A2 m∈M a m∈Ma
X X 
Once the urban network has been constructed with NDS
ðx ; y  Þ, aggregate vehicle flow v~ a can be solved by the Frank– þ ð1 − ȳa;n Þya;n þ ȳa;n ð1 − ya;n Þ ≥ 2;
n∈N a n∈N a
Wolfe algorithm and its improved variations, such as the conjugate
Frank–Wolfe algorithm and biconjugate Frank–Wolfe algorithm ∀ ðx̄; ȳÞ ∈ Ω̄x;y ð37Þ
(Mitradjieva and Lindberg 2013). Fixing aggregate flow v~ a, the best
vehicle responses for the road planner can be obtained by solving If the problem is infeasible, ðxopt ; y opt Þ is the optimal solution
the following linear optimization problem, which is referred to as and stop. Otherwise, obtain the provisional optimal solution de-
the best response problem (BRP): noted by ðx ; y  Þ and the provisional optimal value denoted
X X X X ObjRP of the DNDP under constraints Eq. (37). If ObjRP ≥

min  la ðcfixed
a þ cdam
a va Þ þ
F
la cfixed
a;m;n za;m;n ð1 − εÞUB, then ðxopt ; y opt Þ is the ε-optimal solution and stop.
v∈Ωv ðx ;y Þ
a∈A1 a∈A2 m∈M a n∈N a Otherwise go to Step 2.
X X X
þ la cdam  F
a;m xa;m va þα v~ a ta ðv~ a Þ 3. Solve the UE and BRP by fixing the value of ðx; yÞ at
a∈A2 m∈Ma a∈A1 ðx ; y  Þ and obtain the best response of the UE flow denoted
X X X by v. If
þα za;m;n v~ a ta;m;n ðv~ a Þ ð34Þ
a∈A2 m∈Ma n∈N a
X X X X

UB ≤ la ðcfixed
a þ cdam
a va Þ þ
F
la cfixed
a;m;n za;m;n
s.t. va ¼ v~ a ; ∀ a ∈ A. a∈A1 a∈A2 m∈M a n∈N a
X X X
þ a;m va;m þ α
la cdam F va ta ðva Þ
a∈A2 m∈M a a∈A1
Solution Algorithm X X X
þα va;m;n ta;m;n ðva;m;n Þ ð38Þ
a∈A2 m∈Ma n∈N a
Wang’s SO Relaxation–Based Method
This section implements the SO relaxation–based method on the
proposed model, then develops the improvement of the SO relax- then ðx ; y  Þ is not a better solution than ðxopt ; y opt Þ, and
ation–based method. The SO relaxation–based method defines hence set Ω̄x;y ¼ Ω̄x;y ∪ fðx ; y  Þg and go to Step 1. Other-
a relaxed problem (RP) for the DNDP, which is a MICP and wise, set
determines a lower bound for the DNDP. In this paper, the RP
is defined as X X X X

UB ¼ la ðcfixed
a þ cdam
a va Þ þ
F
la cfixed
a;m;n za;m;n
X a∈A1 a∈A2 m∈Ma n∈N a
min la ðcfixed
a þ cdam
a va Þ
F X X X
ðx;yÞ∈Ωx;y ;v∈Ωv ðx;yÞ
a∈A1 þ la cdam F
a;m va;m þα va ta ðva Þ
X X X X X a∈A2 m∈Ma a∈A1
þ a;m;n za;m;n þ
la cfixed la cdam F
a;m va;m
X X X
a∈A2 m∈Ma n∈N a a∈A2 m∈Ma þα va;m;n ta;m;n ðva;m;n Þ ð39Þ
X X X X a∈A2 m∈M a n∈N a
þα va ta ðva Þ þ α va;m;n ta;m;n ðva;m;n Þ ð35Þ
a∈A1 a∈A2 m∈Ma n∈N a
and ðxopt ; y opt Þ ¼ ðx ; y  Þ. If ObjRP ≥ ð1 − εÞUB, then ðxopt ; y opt Þ
Given a network design decision ðx; yÞ ∈ Ωx;y , we define the set is the ε-optimal solution, so stop. Otherwise, set Ω̄x;y ¼ Ω̄x;y ∪
of UE link flow as fðx ; y  Þg, and go to Step 1.
In the preceding method, the RP with constraints Eq. (37) is
XZ va
solved by the dynamic outer approximation method.
ΩUE
v ðx; yÞ ¼ arg min ta ðθÞdθ 1. Define functions T SO a ðva Þ ≔ va ta ðva Þ and T a;m;n ðva Þ ≔
SO
v∈Ωv ðx;yÞ
a∈A1 0 va ta;m;n ðva Þ, relative tolerance εSO ≥ 0, and threshold link flows
X X XZ va;m;n v̂a and v̂a;m;n .
þ ta;m;n ðθÞdθ ð36Þ 2. Introduce intermediate decision variables T̄ SO a for a ∈ A1
0
a;n for a ∈ A2 ; n ∈ N a. Define the following linear
and T̄ SO
a∈A2 m∈Ma n∈N a

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relaxation of the RP model (RP-revised), which is a MILP Algorithm 1. Improved SO relaxation–based method with solver
model: callback
X
la ðcfixed þ cdam 1. // Initialization
a va Þ
min F
a
2. Define functions T SO a ðva Þ ≔ va ta ðva Þ, T a;m;n ðva Þ ≔ va ta;m;
ðx;yÞ∈Ωx;y T̄≥0v∈Ωv ðx;yÞ a∈A SO
1
X X X nðva Þ, relative tolerances ε ≥ 0, ε ≥ 0, upper bound UB ≔
SO
þ la ðcfixed
a;m xa;m þ cdam
a;m va;m Þ þ α
F
T̄ SO
a þ∞, incumbent optimal strategy ðxopt ; y opt Þ. Introduce
a∈A2 m∈Ma a∈A1
a for a ∈ A1 , and T̄ a;m;n for
intermediate decision variables T̄ SO SO
X X X
þα T̄ SO
a;m;n ð40Þ a ∈ A2 , m ∈ M a , n ∈ N a .
a∈A2 m∈Ma n∈N a 3. Define linear relaxation problem of [RP]:
with constraints Eq. (37). X
3. Solve RP-revised and obtain the solution ðx ; y  ; T ; v Þ. For ½RP − revised ≔ min la ðcfixed
a xa þ cdam
a va Þ
F
ðx;yÞ∈Ωx;y ;T̄≥0;v∈Ωv ðx;yÞ a∈A
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each link a ∈ A1 , if va > v̂a and ½T SO 


a ðxa Þ − T̄ a =T̄ a
SO SO
> X X
1

ε =2, add constraint T̄ a ≥ ½ta ðva Þ þ ta ðva Þva ðva − va Þ þ


SO SO  0   þ la ðcfixed
a;m xa;m þ cdam
a;m va;m Þ
F

ta ðva Þva to RP-revised. For each link a ∈ A2 ; m ∈ M a and a∈A2 m∈Ma


X X X X
n ∈ N a , if va;m;n > v̂a;m;n and ½T SO 
a;m;n ðxa;m;n Þ − T̄ a;m;n =
SO
þα a þα
T̄ SO T̄ SO
a;m;n

T̄ a;m;n > ε =2, add constraint T̄ a;m;n ≥ ½ta;m;n ðva;m;n Þ þ
SO SO SO
a∈A1 a∈A2 m∈Ma n∈N a
0
ta;m;n ðva;m;n Þva;m;n ðva;m;n − va;m;n Þ þ ta;m;n ðva;m;n Þva;m;n to
RP-revised. If no constraint is added to RP-revised in this Make a copy of ½RP − revised as ½RP − copy.
step, then ðx ; y  ; T ; v Þ is an εSO -optimal solution of the 4. // Define callback function
RP with constraints. Otherwise, repeat Step 2. 5. function SO-relaxation-callback([RP-copy])
6. Get the new incumbent solution ðx ; y  ; T ; v Þ and best
bound ObjRP of ½RP − copy
Improvement to SO Relaxation–Based Method
7. Obtain system cost SC at fixed network strategy ðx ; y  Þ
There are two main bottlenecks in this method. First, only one NDS by solving UE flow and [BRP]
is cut off by solving a MICP in each iteration. Thus, this method 8. Implement Algorithm 2 (NDS cutting plane method) to
usually takes many iterations to ensure global optimality. In the update UB; ðxopt ; y opt Þ and cut off non-optimal solution
worst case, the method has to evaluate all NDSs. Second, solving 9. // Since (x ; y  ) is searched at this iteration, cut it off in
a MICP is time consuming, because it needs to solve a high number the next iteration
of MILPs using the dynamic outer-approximation method. 10. Exclude strategy (x ; y  ) from ½RP − revised
We considered generating cutting planes to cut off nonoptimal 11. Implement Algorithm 3 (OA cutting plane method)
NDSs effectively. During the solving procedure, commercial solv- 12. Add generated OA cutting planes to ½RP − revised
ers search branch-and-bound trees of MILPs, and multiple NDS are 13. end function
searched. However, only one NDS is cut off in each iteration after 14. // Main function for solving NDP
solving multiple MILPs, which is time consuming. Instead of solv- 15. function Main(½RP − revised)
ing a MICP completely to cut off one NDS, we cut off multiple 16. // Make a copy of ½RP − revised
NDS within the solution procedure. This method hopefully is much 17. ½RP − copy ≔ ½RP − revised
faster. This is achieved by using lazy constraints, using a technique 18. while true do
called solver callback (IBM 2017). 19. Solve ½RP − copy with SO-relaxation-callback
Many mixed-integer program solvers now offer solver callback 20. LB ≔ objective value of ½RP − copy
to modify the solving process. They allow the user to define a UB − LB
21. if LB ¼¼ none or ≤ ε then
solver callback function that solvers will call regularly during the UB
optimization process. When the solver reaches a new solution to a 22. break
problem, it gives the user a chance to add a lazy constraint(s) to the 23. end if
problem that makes the current solution infeasible. The solver call- 24. ½RP − copy ≔ ½RP − revised
back function allows us to provide the solver with a chance to cut 25. end while
off a nonoptimal NDS when the solver reaches a new solution in 26. return UB, ðxopt ; y opt Þ
each iteration. Thus, hopefully we can cut off multiple nonoptimal 27. end function
NDSs in each iteration, which should accelerate the solution pro-
cedure. We revised Wang et al. (2013)’s method as follows, using NDS Cutting Plane Method
the solver callback function. In Wang et al. (2013)’s method, one network strategy ðx ; y  Þ can
be cut off in each iteration by the following linear constraint
Framework of Improved SO Relaxation–Based Method
This method (Algorithm 1) searches the branch-and-cut tree of the X X X
linear relaxation problem of the RP and sometimes finds a solution ð1 − xa;m Þxa;m þ xa;m ð1 − xa;m Þ
a∈A2 m∈Ma m∈M a
to this problem. The callback function then is called and the sol-
X X 
ution is compared with the incumbent solution. If the newly gen- þ ð1 − ya;n Þya;n þ ya;n ð1 − ya;n Þ ≥ 2 ð41Þ
erated solution is better, update the incumbent solution and the n∈N a n∈N a
upper bound of the NDP. If not, cut off the generated solution using
the NDS cutting plane method (Algorithm 2). In addition, the re- which we refer to as a NDS cutting plane. When we try to solve
laxed problem is tightened using the dynamic outer-approximation the linear relaxation of the RP, we potentially can generate and add
(OA) cutting plane method (Algorithm 3). These added cutting a NDS cutting plane at each searched solution using the solver call-
planes help lift the lower bound LB of NDP. The method converges back function. When a NDS is searched, we easily can obtain the
to the globally optimal solution. The framework of the proposed system cost, SC, under this NDS by solving the UE flow and the BRP.
method is given as pseudo-code in Algorithm 1. If SC is less than the current upper bound, UB, then this NDS is better

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than all searched solutions, and we update the incumbent solution. Algorithm 3. Dynamic OA cutting plane method with solver
Otherwise, we cut it off using a generated NDS cutting plane. The callback
NDS cutting plane method is implemented as Algorithm 2. 1. Input: Solution ðx ; y  ; T ; v Þ, best bound ObjRP of ½RP −
copy
2. Set threshold values v^ a and v^ a;m;n , which satisfy
Algorithm 2. NDS cutting plane method with solver callback ObjRP × ðεSO =2Þ
3. a ð^
T SO va Þ ¼ P ; ∀ a ∈ A1
1. Input: Solution ðx ; y  ; T ; v Þ, best bound ObjRP of ½RP − jA1 j þ a∈A2 jN a jjM a j
copy, current UB, SC
ObjRP × ðεSO =2Þ
2. // Save incumbent solution or cut off non-optimal solution for 4. a ð^
T SO va;m;n Þ ¼ P ;∀ a ∈ A1 ;m ∈ M a ;
NDP jA1 j þ a∈A2 jN a jjM a j
3. if UB < SC then n ∈ Na
4. // Cut off non-optimal solution ðx ; y  Þ for NDP
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5. for a ∈ A1 do
5. Exclude strategy ðx ; y  Þ by adding lazy constraint to 
a ðva Þ − T̄ a
T SO εSO
SO
½RP − copy 6. if va > v^ a and > then
6. else
SO
T̄ a 2
 0  
7. // Save incumbent solution for NDP 7. add lazy constraint T̄ SO a ≥ ½ta ðva Þ þ ta ðva Þva ðva −
  
8. UB ≔ SC va Þ þ ta ðva Þva to ½RP − copy
9. ðxopt ; y opt Þ ≔ ðx ; y  Þ 8. end if
10. end if 9. end for
10. for a ∈ A2 do
11. for m ∈ Ma do
12. for n ∈ N a do
Dynamic OA Cutting Plane Method T SO ðv Þ− T̄ SOa;m;n ε
SO
13. if va;m;n > v^ a;m;n and a a;m;n >
Wang et al. (2013)’s method generates a set of linear constraints to SO
T̄ a;m;n 2
tighten the linear relaxation of the RP at each iteration. We refer to then
these as OA cutting planes. Our method considers generating OA 14. add lazy constraint
cutting planes at each searched solution to tighten the lower bound

of the initial problem, which can make use of the solver callback a;m;n ≥ ½ta;m;n ðva;m;n Þ
T̄ SO
function. The dynamic OA cutting plane method is implemented as 0
þ ta;m;n ðva;m;n Þva;m;n ðva;m;n
Algorithm 3.
− va;m;n Þ þ ta;m;n ðva;m;n Þva;m;n

to ½RP − copy
15. end if
16. end for
17. end for
18. end for

Numerical Tests

This section used the Sioux Falls network to illustrate the effective-
ness of the proposed model and solution method. This method uses
CPLEX version 12.8 to solve the linear relaxation of the RP with a
callback function. The relative optimality tolerance εSO was set at
0.001 for the dynamic OA method. The relative optimality toler-
ance ε for the bilevel programming also was set at 0.001. The tests
were performed on a PC with an Intel Core i5 CPU and 8G RAM.
Fig. 1 shows the network and new candidate links. Private car
demands and the data in the initial Sioux Falls network have the
same settings as those used by the Transportation Networks for Re-
search Core Team (2020), and we adjusted the unit of link data as
done by Luathep et al. (2011). We chose A2 ¼ fð13; 14Þ; ð14; 13Þ;
ð11; 15Þ; ð15; 11Þ; ð11; 9Þ; ð9; 11Þ; ð7; 16Þ; ð16; 7Þ; ð19; 22Þ; ð22; 19Þg
as the candidate link set. The value of time was set as $10/h. Freight
vehicle demands were set as 10% of private car demands. The
travel time function of links followed Bureau of Public Roads
(BPR) equation
ta ðva Þ ¼ t0a ½1 þ 0.15ðva =ca Þ4 

where t0a = free-flow time on link a; and ca = capacity of link a.


We assumed three road classifications: Types 1, 2, and 3. The
freight trucks were assumed to be fully laden two-axle HGVs, as
Fig. 1. Sioux Falls network.
in Moreno-Quintero et al. (2013). Based on the data in Martin and

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Table 1. SO relaxation–based and improved SO relaxation–based methods when three candidate links are chosen
SO relaxation–based method Improved SO relaxation–based method
Average time to Average time to
CPU Relative generate one CPU Relative NDS cutting generate one
Cases time (s) Iterations gap (%) NDS cut (s) time (s) Iterations gap (%) planes NDS cut (s)
Case 1 592.50 89 0.000 6.66 22.81 2 0.000 89 0.26
Case 2 662.27 92 0.000 7.20 16.34 3 0.000 86 0.19
Case 3 918.76 129 0.000 7.12 19.94 3 0.000 141 0.14
Case 4 490.54 71 0.000 6.91 15.36 2 0.000 71 0.22
Case 5 335.84 71 0.000 4.73 11.47 2 0.000 70 0.16
Case 6 386.11 89 0.000 4.34 8.53 2 0.000 94 0.09
Case 7 274.69 62 0.000 4.43 8.74 2 0.000 66 0.13
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Case 8 275.29 89 0.000 3.09 10.07 3 0.000 88 0.11


Case 9 742.74 130 0.000 5.71 15.93 3 0.000 135 0.12
Case 10 567.16 115 0.087 4.93 13.88 2 0.000 121 0.11

can be constructed with capacities of 0 (not constructed), 10,000


(one lane), or 20,000 (two lanes), and that existing links were ran-
domly chosen to be one of the three classifications.
For the Sioux Falls network with 10 candidate links, if there was
no upper bound for the budget, we found that total investment of
the optimal NDS was $2.913 × 109 , with a system cost of $7.883 ×
105 when using the improved SO relaxation–based method. In this
case, Links (7, 16) and (16, 7) were not built. This phenomenon is a
kind of Braess’s paradox. The optimal NDS should not construct all
candidate links in the most advanced form with maximum lanes
and no budget constraint. Thus, we should try to solve the optimal
NDS and construct candidate links with proper road classifications
and lanes.
Next, we tested the efficiencies of the SO relaxation–based
Fig. 2. Algorithm efficiency comparison.
method and the improved SO relaxation–based method over 10 in-
stances. In each instance, we randomly chose three links from link
set A2 as candidate links. The relative optimality tolerance was set
at ε ¼ 0.001. We also set the budget at $5 × 108 for each instance.
Thoresen (2015), the fixed road damage cost of these three road The computational results are reported in Table 1 and Fig. 2.
classifications was set to $0.648=lane-km, $0.266=lane-km, and Obviously, the improved SO relaxation–based method outper-
$0.228=lane-km, respectively. The marginal road damage cost per forms the SO relaxation–based method of Wang et al. (2013). The
unit HGV on these three road classifications was set to $0.0218=km, former saved 97.3% of the computational time of the latter. We
$0.636=km, and $1.52=km, respectively. The construction cost also found that the number of NDS cuts generated by the im-
of these three classifications was set to $1.5 million=lane-km, proved SO relaxation–based method was similar to that generated
$0.8 million=lane-km, and $0.3 million=lane-km. The free-flow by the SO relaxation–based method. However, the average time
time of link a with the three classifications was set to t0a ; 1.2t0a , needed for the improved method to generate an NDS cut was
and 1.5t0a , where t0a is a constant with link a ∈ A, which was set much smaller than that for the initial method.
to the free-flow time in the Transportation Networks for Research We randomly chose five links from link set A2 as candidate links,
Core Team (2020) data set. In addition, we assumed that new links and kept the other settings of the preceding test. Computational time

Table 2. SO relaxation–based and improved SO relaxation–based methods when five candidate links are chosen
SO relaxation–based method Improved SO relaxation–based method
Average time to Average time to
CPU Relative generate one CPU Relative NDS cutting generate one
Cases time (s) Iterations gap (%) NDS cut (s) time (s) Iterations gap (%) planes NDS cut (s)
Case 1 >3,600 103 5.449 34.95 314.32 3 0.000 1386 0.23
Case 2 >3,600 228 2.382 15.79 99.36 3 0.000 473 0.21
Case 3 >3,600 259 3.498 13.90 136.09 2 0.000 858 0.16
Case 4 >3,600 169 3.493 21.30 193.43 3 0.000 1037 0.19
Case 5 >3,600 487 0.793 7.39 106.65 3 0.000 604 0.18
Case 6 >3,600 107 5.010 33.64 254.34 3 0.000 1352 0.19
Case 7 >3,600 333 2.735 10.81 51.63 2 0.000 679 0.08
Case 8 >3,600 185 2.598 19.46 69.47 3 0.000 642 0.11
Case 9 >3,600 220 2.454 16.36 74.47 3 0.000 592 0.13
Case 10 >3,600 180 3.666 20.00 84.14 2 0.000 679 0.12

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Table 3. Computational time under different budgets (s) government agencies may overestimate the network performance
Budget 0.5 × 109 1× 109 Infinity improvement made by road capacity expansion.
3. This paper considers private cars for passenger transportation
Case 1 314.32 539.07 618.90
and trucks for freight transportation. The proposed model frame-
Case 2 99.36 272.64 538.88
Case 3 136.09 393.88 604.66
work could be extended to address a more realistic transport net-
Case 4 193.43 375.22 698.39 work with multitype passenger travel means and multisize trucks,
Case 5 106.65 299.48 1297.28 especially in context of large-truck restriction regulation in urban
Case 6 254.34 474.00 723.22 areas (Wang et al. 2020).
Case 7 51.63 312.32 690.93 4. This paper proposes an improved SO relaxation–based method.
Case 8 69.47 273.80 531.41 Although it outperforms the SO relaxation–based method, we
Case 9 74.47 363.16 671.70 believe it can be improved further. Employing heuristic and meta-
Case 10 84.14 729.77 658.07 heuristic algorithms seems helpful for providing tight bounds for
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the DNDP, which may help accelerate the solution procedure.


Furthermore, parallel branch-and-bound can be a practical way
to improve our solution method.
was limited to 3,600 s for all cases. The computational results are 5. Because existing automated vehicle (AV) technology develop-
reported in Table 2. ment and innovation indicate great potential for improving the
We found that these cases cannot be solved by the SO relaxation– performance of urban transportation (Qu et al. 2017; Zhou et al.
based method in acceptable time. Furthermore, we found that the 2016, Ye and Wang 2018), we believe that AVs will be helpful
improved SO relaxation–based method generated NDS cuts with to urban freight transportation in the future. We suggest that
stable efficiency in solving larger scale problem, whereas the SO future studies consider network design with automated freight
relaxation–based method did not. trucks.
To explore the relation between budget and computational time,
we executed the improved SO relaxation–based method over the
10 preceding cases using different budgets. The CPU time to solve Data Availability Statement
each instance is listed in Table 3. The results show that the com-
putational time generally increased as the budget increases. We in- Some or all data, models, or code generated or used during the
fer that when the budget is larger, the number of candidate solutions study are available from the corresponding author by request, in-
also is larger. A similar phenomenon was evident with Wang et al. cluding the traffic network, origin-destination (OD) demand table,
(2013)’s SO relaxation–based method. link travel time, link volume, and road damage parameters.

Conclusions and Suggestions Acknowledgments

This paper proposes a bilevel network design model for urban This study has been substantially supported by the National Natural
freight transportation networks to reduce the network’s system cost, Science Foundation Council of China through projects (Grant
which consists of road damage cost and travel time cost. Whereas Nos. 71601142, 71531011, and 71890970/71890973), and a project
the upper-level road planner chooses the optimal road classification sponsored by the program of Shanghai Academic Research Leader.
and capacity design to minimize the system cost, lower-level network
users make route choices in a UE manner. After that, we propose an
improved SO relaxation–based method that outperforms the existing Notation
SO relaxation–based method in solving the bilevel model. Numerical
tests indicated the feasibility of our model and method. The main The following symbols are used in this paper:
findings are as follows: A = A1 ∪ A2 ;
1. The optimal NDS will not construct all candidate links as ad- A1 = set of existing links in freight transportation network;
vanced types with maximum lanes without budget constraints. A2 = set of new candidate links that can be constructed;
Thus, they should be constructed with proper levels and lanes. B = total construction budget;
This instance of Braess’s paradox also urges development of an cdam
a = damage cost per unit distance if freight vehicle travels
efficient algorithm to solve the optimal NDS. on link a ∈ A1 ;
2. Link capacity design for candidate links can improve network cdam
a;m = Damage cost per unit distance if freight vehicle travels
performance. However, choosing proper types for candidate on link a ∈ A2 when link is type m ∈ M a ;
links can further improve the performance of the urban freight cfixed
a = fixed cost per unit distance of link a ∈ A1 ;
transportation network.
a;m;n = fixed cost per unit distance of link a ∈ A2 when link a is
cfixed
Based on our proposed model and method, we make the follow- level m with n lanes;
ing suggestions: D = destination set in freight transportation network;
1. This paper proposes a network design model that considers travel
DFw = demands of freight trucks for OD pair w ∈ W;
time cost, road damage cost, and road classification design.
DPw = demands of private cars for OD pair w ∈ W;
Future research can extend this idea in various freight network
environments (NDP for urban freight transportation with demand i− = fðk;iÞ ∈ A∶k ∈ Ng;
uncertainty, NDP for link design and maintenance planning, and iþ = fði;kÞ ∈ A∶k ∈ Ng;
so forth). la = length of link a ∈ A;
2. We suggest that government agencies consider not only road M a = road classification set of candidate link a ∈ A2 ;
capacity expansion, but also traffic components and road damage N = set of nodes in freight transportation network;
caused by freight trucks. If road classification is not considered, N a = set of numbers of lanes for candidate link a ∈ A2 ;

© ASCE 04020122-9 J. Transp. Eng., Part A: Systems

J. Transp. Eng., Part A: Systems, 2020, 146(10): 04020122


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