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Protected Working Capacity Envelope (PWCE) has been proposed to simplify resource management and traffic control for survivable WDM networks. In a PWCE-based network, part of the link capacity is reserved for accommodating working routes, and the remaining capacity is reserved for backup routes. The shortest path routing is applied in PWCE-based networks. An arrival call is accepted only when each link along the shortest path has a free working channel. Such a working path routing scheme greatly simplifies the call admission control process for dynamic traffic, and it is especially suitable for implementation in a distributed manner among network nodes. In this article, we investigate two protection strategies: Bundle Protection (BP) and Individual Protection (IDP). In BP, only one backup path can be used to protect a failure component, whereas multiple backup paths can be used in IDP. We formulate four mixed integer non-linear programming (MINLP) problems using BP and IDP strategies for single link and single node failure protection. Each model is designed to determine link metrics for shortest working path routing, working and backup channel assignments, and backup path planning. Our objective is to minimize call-blocking probability on the bottleneck link. Since these models are highly non-linear and non-convex, it is difficult to obtain exact global optimal solutions. We propose a Simulated Annealing-based Heuristic (SAH) algorithm to obtain near optimal solutions. This SAH adopts the concepts of simulated annealing as well as the bi-section technique to minimize call-blocking probabilities. To evaluate the performance, we made simulation comparisons between SAH and the unity link weight assignment scheme. The results indicate that SAH can greatly reduce call-blocking probabilities on benchmark and the randomly generated networks.