Abstract: This paper considers a network design problem introduced which resource allocation is performed within a Wavelength Division Multiplexing optical ring network to reduce overall equipment cost. The problem can be summarized as follows. The Add-Drop Multiplexers (ADM's) that are used to terminate lightpaths in an optical (SONET/SDH) ring are expensive and therefore a naive implementation that places ADM's for each wavelength at every node would waste expensive resources. However, by carefully assigning connections to wavelengths and routing the resulting lightpaths, one may avoid terminating all wavelengths at every node, and thereby reduce the number of ADM's needed.!26
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