Title: An Algorithm for Hierarchical Network Design Author: Frederico Rodrigues Borges da Cruz Abstract: The primary network of a telephone switching center is presented as a hierarchical network. In such a network, a root node (switching center) distributes flows to terminal nodes (distribution boxes) via a set of demand concentrators. A 3-phase hierarchical network design algorithm is presented. First, the fixed-charge p-median problem formulation is used to locate the concentrators. For each concentrator's network, a good topology is obtained by solving a mixed integer programming problem through addition and interchange of arcs. The third phase uses a similar model to connect the concentrators to the root node. The proposed algorithm is implemented. Also presented are the data flow diagrams, data dictionary, and the module hierarchical diagrams of the implemented system. The 3-phase algorithm results show that good solutions can be obtained for the hierarchical network, in spite of not being the best. Large networks are solved (200 nodes) and the solutions show that the CPU time grows quickly with the problem size. Keywords: Hierarchical network; heuristic; location.