—This paper studies the capacity and flow assignment problem arising in the design of self-healing asynchronous transfer mode (ATM) networks using the virtual path concept. The problem is formulated here as a linear programming problem which is solved using standard methods. The objective is to minimize the spare capacity cost for the given restoration requirement. The spare cost depends on the restoration strategies used in the network. In this paper, we compare several restoration strategies quantitatively in terms of spare cost, notably: global versus failure-oriented reconfiguration, path versus link restoration, and state-dependent versus state-independent restoration. The advantages and disadvantages of various restoration strategies are also highlighted. Such comparisons provide useful guidance for real network design. Further, a new heuristic algorithm based on the minimum cost route concept is developed for the design of large self-healing ATM networks using path restorati...