The accessibility arc upgrading problem

The accessibility arc upgrading problem (AAUP) is a network upgrading problem that arises in real-life decision processes such as rural network planning. In this paper, we propose a linear integer programming formulation and two solution approaches for this problem. The first approach is based on the knapsack problem and uses the knowledge gathered from an analytical study of some special cases of the AAUP. The second approach is a variable neighbourhood search with strategic oscillation. The excellent performance of both approaches is demonstrated using a large set of randomly generated instances. Finally, we stress the importance of a proper allocation of scarce resources in accessibility improvement.