In the paper the problem of designing two-level hierarchical structure of wide area network (WAN) is considered. The goal is to select gateways location, topology of 2nd level network, channel capacities and flow routes in order to minimize linear combination of the total average delay per packet and the total cost of leasing capacities of channels of 2nd level network, subject to budget constraint. An exact algorithm based on branch and bound method is proposed. Some results of computational experiments are reported. Relying on computational experiments, several properties of the considered problem, important from practical point of view, are formulated.
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