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Integer Programming Integer Programming

Modeling Modeling
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ode g ode g
Integer Programming (IP) Models
Integer Programming Graphical Solution
Computer Solution of Integer Programming Problems
With Excel and QM for Windows
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Integer Programming Models
Types of Models
Total Integer Model: All decision variables required to have
integer solution values. g
0-1 Integer Model: All decision variables required to have
integer values of zero or one.
Mixed Integer Model: Some of the decision variables (but
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Mixed Integer Model: Some of the decision variables (but
not all) required to have integer values.
A Total Integer Model (1 of 2)
Machine shop obtaining new presses and lathes.
Marginal profitability: each press $100/day; each lathe
$150/day

Machine
Required Floor
Space
Purchase
Price
$150/day.
Resource constraints: $40,000, 200 sq. ft. floor space.
Machine purchase prices and space requirements:
4

p
(sq. ft.)
Price
Press

Lathe
15

30
$8,000

4,000

3
A Total Integer Model (2 of 2)
Integer Programming Model:
Maximize Z = $100x
1
+ $150x
2
subject to:
8,000x
1
+ 4,000x
2
$40,000
15x
1
+ 30x
2
200 ft
2
x
1
x
2
0 and integer
5
x
1
, x
2
0 and integer
x
1
= number of presses
x
2
= number of lathes
Recreation facilities selection to maximize daily usage by
residents.
Resource constraints: $120,000 budget; 12 acres of land.
S l ti t i t ith i i l t i t
A 0 - 1 Integer Model (1 of 2)
Selection constraint: either swimming pool or tennis center
(not both).
Data:

Recreation
Facility
Expected Usage
(people/day)
Cost ($)
Land
Requirement
(acres)
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Swimming pool
Tennis Center
Athletic field
Gymnasium
300
90
400
150
35,000
10,000
25,000
90,000
4
2
7
3

4
Integer Programming Model:
Maximize Z = 300x
1
+ 90x
2
+ 400x
3
+ 150x
4
A 0 - 1 Integer Model (2 of 2)
subject to:
$35,000x
1
+ 10,000x
2
+ 25,000x
3
+ 90,000x
4
$120,000
4x
1
+ 2x
2
+ 7x
3
+ 3x
4
12 acres
x
1
+ x
2
1 facility
x
1
, x
2
, x
3
, x
4
= 0 or 1
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x
1
= construction of a swimming pool
x
2
= construction of a tennis center
x
3
= construction of an athletic field
x
4
= construction of a gymnasium
A Mixed Integer Model (1 of 2)
$250,000 available for investments providing greatest
return after one year.
Data: Data:
Condominium cost $50,000/unit, $9,000 profit if sold
after one year.
Land cost $12,000/ acre, $1,500 profit if sold after one
year.
Municipal bond cost $8,000/bond, $1,000 profit if sold
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Municipal bond cost $8,000/bond, $1,000 profit if sold
after one year.
Only 4 condominiums, 15 acres of land, and 20
municipal bonds available.
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Integer Programming Model:
Maximize Z = $9,000x
1
+ 1,500x
2
+ 1,000x
3
A Mixed Integer Model (2 of 2)
subject to:
50,000x
1
+ 12,000x
2
+ 8,000x
3
$250,000
x
1
4 condominiums
x
2
15 acres
x
3
20 bonds
x
2
0
9
x
1
, x
3
0 and integer
x
1
= condominiums purchased
x
2
= acres of land purchased
x
3
= bonds purchased
Rounding non-integer solution values up to the nearest
integer value can result in an infeasible solution
Integer Programming Graphical Solution
integer value can result in an infeasible solution
A feasible solution is ensured by rounding down non-
integer solution values but may result in a less than optimal
(sub-optimal) solution.
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Integer Programming Example
Graphical Solution of Maximization Model
Maximize Z = $100x
1
+ $150x
2
subject to: subject to:
8,000x
1
+ 4,000x
2
$40,000
15x
1
+ 30x
2
200 ft
2
x
1
, x
2
0 and integer
Optimal Solution:
Z = $1,055.56
x = 2 22 presses
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x
1
= 2.22 presses
x
2
= 5.55 lathes
Feasible Solution Space with Integer Solution Points
Branch and Bound Method
Traditional approach to solving integer programming
problems.
Based on principle that total set of feasible solutions can be Based on principle that total set of feasible solutions can be
partitioned into smaller subsets of solutions.
Smaller subsets evaluated until best solution is found.
Method is a tedious and complex mathematical process.
Excel and QM for Windows.
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Recreational Facilities Example:
Computer Solution of IP Problems
0 1 Model with Excel (1 of 5)
Maximize Z = 300x
1
+ 90x
2
+ 400x
3
+ 150x
4
subject to:
$35,000x
1
+ 10,000x
2
+ 25,000x
3
+ 90,000x
4
$120,000
4x
1
+ 2x
2
+ 7x
3
+ 3x
4
12 acres
13
x
1
+ x
2
1 facility
x
1
, x
2
, x
3
, x
4
= 0 or 1
Computer Solution of IP Problems
0 1 Model with Excel (2 of 5)
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Computer Solution of IP Problems
0 1 Model with Excel (3 of 5)
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Computer Solution of IP Problems
0 1 Model with Excel (4 of 5)
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Computer Solution of IP Problems
0 1 Model with Excel (5 of 5)
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Computer Solution of IP Problems
0 1 Model with QM for Windows (1 of 3)
Recreational Facilities Example:
M i i Z 300 90 400 150 Maximize Z = 300x
1
+ 90x
2
+ 400x
3
+ 150x
4
subject to:
$35,000x
1
+ 10,000x
2
+ 25,000x
3
+ 90,000x
4
$120,000
4x
1
+ 2x
2
+ 7x
3
+ 3x
4
12 acres
x
1
+ x
2
1 facility
18
x
1
, x
2
, x
3
, x
4
= 0 or 1
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Computer Solution of IP Problems
Total Integer Model with Excel (1 of 5)
Integer Programming Model:
Maximize Z = $100x
1
+ $150x
2
subject to:
8,000x
1
+ 4,000x
2
$40,000
15x
1
+ 30x
2
200 ft
2
0 d i t
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x
1
, x
2
0 and integer
Computer Solution of IP Problems
Total Integer Model with Excel (2 of 5)
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Exhibit 5.8
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Computer Solution of IP Problems
Total Integer Model with Excel (4 of 5)
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Computer Solution of IP Problems
Total Integer Model with Excel (3 of 5)
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Computer Solution of IP Problems
Total Integer Model with Excel (5 of 5)
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Integer Programming Model:
Maximize Z = $9 000x
1
+ 1 500x
2
+ 1 000x
3
Computer Solution of IP Problems
Mixed Integer Model with Excel (1 of 3)
Maximize Z $9,000x
1
+ 1,500x
2
+ 1,000x
3
subject to:
50,000x
1
+ 12,000x
2
+ 8,000x
3
$250,000
x
1
4 condominiums
x
2
15 acres
x
3
20 bonds
0
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x
2
0
x
1
, x
3
0 and integer
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Computer Solution of IP Problems
Total Integer Model with Excel (2 of 3)
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Computer Solution of IP Problems
Solution of Total Integer Model with Excel (3 of 3)
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Computer Solution of IP Problems
Mixed Integer Model with QM for Windows (1 of 2)
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Computer Solution of IP Problems
Mixed Integer Model with QM for Windows (2 of 2)
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University bookstore expansion project.
Not enough space available for both a computer department
0 1 Integer Programming Modeling Examples
Capital Budgeting Example (1 of 4)
and a clothing department.
Data:
Project
NPV Return
($1000)
Project Costs per Year ($1000)
1 2 3
1. Website 120 55 40 25
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2. Warehouse
3. Clothing department
4. Computer department
5. ATMs

Avai labl e funds per year
85
105
140
75
45
60
50
30

150
35
25
35
30

110
20
--
30
--

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x
1
= selection of web site project
x
2
= selection of warehouse project
x = selection clothing department project
0 1 Integer Programming Modeling Examples
Capital Budgeting Example (2 of 4)
x
3
= selection clothing department project
x
4
= selection of computer department project
x
5
= selection of ATM project
x
i
= 1 if project i is selected, 0 if project i is not selected
Maximize Z = $120x
1
+ $85x
2
+ $105x
3
+ $140x
4
+ $70x
5
subject to:
30
55x
1
+ 45x
2
+ 60x
3
+ 50x
4
+ 30x
5
150
40x
1
+ 35x
2
+ 25x
3
+ 35x
4
+ 30x
5
110
25x
1
+ 20x
2
+ 30x
4
60
x
3
+ x
4
1
x
i
= 0 or 1
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0 1 Integer Programming Modeling Examples
Capital Budgeting Example (3 of 4)
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0 1 Integer Programming Modeling Examples
Capital Budgeting Example (4 of 4)
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0 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (1 of 4)
Which of six farms should be purchased that will meet
current production capacity at minimum total cost, including
annual fixed costs and shipping costs?

Plant
Avai labl e
Capacity
(tons,1000s)
A
B
C
12
10
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Farms Annual Fixed
Costs
($1000)
Projected Annual
Harvest (tons, 1000s)
1 405 11.2

Plant
Data:
Shipping Costs
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2
3
4
5
6
390
450
368
520
465
10.5
12.8
9.3
10.8
9.6
Farm A B C
1
2
3
4
5
6
18 15 12
13 10 17
16 14 18
19 15 16
17 19 12
14 16 12

y
i
= 0 if farm i is not selected, and 1 if farm i is selected, i = 1,2,3,4,5,6
x
ij
= potatoes (tons, 1000s) shipped from farm i, i = 1,2,3,4,5,6 to plant j, j =
A,B,C.
Minimize Z = 18x + 15x + 12x + 13x + 10x + 17x + 16x +
0 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (2 of 4)
Minimize Z = 18x
1A
+ 15x
1B
+ 12x
1C
+ 13x
2A
+ 10x
2B
+ 17x
2C
+ 16x
3A
+
14x
3B
+ 18x
3C
+ 19x
4A
+ 15x
4b
+ 16x
4C
+ 17x
5A
+ 19x
5B
+
12x
5C
+ 14x
6A
+ 16x
6B
+ 12x
6C
+ 405y
1
+ 390y
2
+ 450y
3
+
368y
4
+ 520y
5
+ 465y
6
subject to:
x
1A
+ x
1B
+ x
1B
- 11.2y
1
0 x
2A
+ x
2B
+ x
2C
-10.5y
2
0
x
3A
+ x
3A
+ x
3C
- 12.8y
3
0 x
4A
+ x
4b
+ x
4C
- 9.3y
4
0
x
5A
+ x
5B
+ x
5B
- 10.8y
5
0 x
6A
+ x
6B
+ X
6C
- 9.6y
6
0
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x
1A
+ x
2A
+ x
3A
+ x
4A
+ x
5A
+ x
6A
= 12
x
1B
+ x
2B
+ x
3B
+ x
4B
+ x
5B
+ x
6B
= 10
x
1C
+ x
2C
+ x
3C
+ x
4C
+ x
5C
+ x
6C
= 14
x
ij
0 y
i
= 0 or 1
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0 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (3 of 4)
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0 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (4 of 4)
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Cities Cities within 300 miles
APS wants to construct the minimum set of new hubs in the
following twelve cities such that there is a hub within 300
miles of every city:
0 1 Integer Programming Modeling Examples
Set Covering Example (1 of 4)
1. Atlanta Atlanta, Charlotte, Nashville
2. Boston Boston, New York
3. Charlotte Atlanta, Charlotte, Richmond
4. Cincinnati Cincinnati, Detroit, Indianapolis, Nashville, Pittsburgh
5. Detroit Cincinnati, Detroit, Indianapolis, Milwaukee,
Pittsburgh
6. Indianapolis Cincinnati, Detroit, Indianapolis, Milwaukee, Nashville,
St. Louis
7 Mil k D t it I di li Mil k
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7. Milwaukee Detroit, Indianapolis, Milwaukee
8. Nashville Atlanta, Cincinnati, Indianapolis, Nashville, St. Louis
9. New York Boston, New York, Richmond
10. Pittsburgh Cincinnati, Detroit, Pittsburgh, Richmond
11. Richmond Charlotte, New York, Pittsburgh, Richmond
12. St. Louis Indianapolis, Nashville, St. Louis
x
i
= city i, i = 1 to 12, x
i
= 0 if city is not selected as a hub and x
i
= 1if it is.
Minimize Z = x
1
+ x
2
+ x
3
+ x
4
+ x
5
+ x
6
+ x
7
+ x
8
+ x
9
+ x
10
+ x
11
+ x
12
subject to:
Atl t 1
0 1 Integer Programming Modeling Examples
Set Covering Example (2 of 4)
Atlanta: x
1
+ x
3
+ x
8
1
Boston: x
2
+ x
10
1
Charlotte: x
1
+ x
3
+ x
11
1
Cincinnati: x
4
+ x
5
+ x
6
+ x
8
+ x
10
1
Detroit: x
4
+ x
5
+ x
6
+ x
7
+ x
10
1
Indianapolis: x
4
+ x
5
+ x
6
+ x
7
+ x
8
+ x
12
1
Milwaukee: x
5
+ x
6
+ x
7
1
Nashville: x
1
+ x
4
+ x
6
+ x
8
+ x
12
1
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Nashville: x
1
x
4
x
6
x
8
x
12
1
New York: x
2
+ x
9
+ x
11
1
Pittsburgh: x
4
+ x
5
+ x
10
+ x
11
1
Richmond: x
3
+ x
9
+ x
10
+ x
11
1
St Louis: x
6
+ x
8
+ x
12
1 x
ij
= 0 or 1
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0 1 Integer Programming Modeling Examples
Set Covering Example (3 of 4)
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0 1 Integer Programming Modeling Examples
Set Covering Example (4 of 4)
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Total Integer Programming Modeling Example
Problem Statement (1 of 3)
Textbook company developing two new regions.
Planning to transfer some of its 10 salespeople into new regions.
Average annual expenses for sales person:
Region 1 - $10,000/salesperson
Region 2 - $7,500/salesperson
Total annual expense budget is $72,000.
Sales generated each year:
Region 1 $85 000/salesperson
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Region 1 - $85,000/salesperson
Region 2 - $60,000/salesperson
How many salespeople should be transferred into each region in
order to maximize increased sales?
Step 1:
Formulate the Integer Programming Model
Total Integer Programming Modeling Example
Model Formulation (2 of 3)
Maximize Z = $85,000x
1
+ 60,000x
2
subject to:
x
1
+ x
2
10 salespeople
$10,000x
1
+ 7,000x
2
$72,000 expense budget
x
1
x
2
0 or integer
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x
1
, x
2
0 or integer
Step 2:
Solve the Model using QM/Excel for Windows
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Total Integer Programming Modeling Example
Solution with QM for Windows (3 of 3)
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