%AAhmed, R.%AEfrat, A.%AKobourov, S.%AKrieger, S.%ASpence, R.%D2019%I %K %MOSTI ID: 10109426 %PMedium: X %TApproximation algorithms for the vertex-weighted grade-of-service Steiner tree problem %XGiven a graph G = (V, E) and a subset T ⊆ V of terminals, a Steiner tree of G is a tree that spans T. In the vertex-weighted Steiner tree (VST) problem, each vertex is assigned a non-negative weight, and the goal is to compute a minimum weight Steiner tree of G. Vertex-weighted problems have applications in network design and routing, where there are different costs for installing or maintaining facilities at different vertices. We study a natural generalization of the VST problem motivated by multi-level graph construction, the vertex-weighted grade-of-service Steiner tree problem (V-GSST), which can be stated as follows: given a graph G and terminals T, where each terminal v ∈ T requires a facility of a minimum grade of service R(v) ∈ {1, 2, . . . `}, compute a Steiner tree G0 by installing facilities on a subset of vertices, such that any two vertices requiring a certain grade of service are connected by a path in G 0 with the minimum grade of service or better. Facilities of higher grade are more costly than facilities of lower grade. Multi-level variants such as this one can be useful in network design problems where vertices may require facilities of varying priority. While similar problems have been studied in the edge-weighted case, they have not been studied as well in the more general vertex-weighted case. We first describe a simple heuristic for the V-GSST problem whose approximation ratio depends on `, the number of grades of service. We then generalize the greedy algorithm of [Klein & Ravi, 1995] to show that the V-GSST problem admits a (2 ln |T|)-approximation, where T is the set of terminals requiring some facility. This result is surprising, as it shows that the (seemingly harder) multi-grade problem can be approximated as well as the VST problem, and that the approximation ratio does not depend on the number of grades of service. Finally, we show that this problem is a special case of the directed Steiner tree problem and provide an integer linear programming (ILP) formulation for the V-GSST problem.