Integer Linear Programming

Problem Set 6

Yes/No Setup costs

Capital Budgeting Production planning
Site selection Inv Problems

no sensitivity report
the chance of changing the optimal solution after you change the constaint is very high
highly sensitive
1)
PE WE NM NPR
1 1 1 0

constraints
PE WE NM NPR
year 1 15000 10000 10000 15000
year 2 20000 15000 10000
year 3 20000 20000 10000
year 4 15000 5000 4000 10000
present value 90000 40000 10000 37000

year 1 35000 <= 40000

year 2 35000 50000
year 3 40000 40000
year 4 24000 35000

total cost 140000

PE WE NM NPR
product mix decision 1 1 1 0

PE WE NM NPR
year 1 15000 10000 10000 15000
year 2 20000 15000 0 10000
year 3 20000 20000 0 10000
year 4 15000 5000 4000 10000
90000 40000 10000 37000

used available
year 1 35000 <= 40000
year 2 35000 50000
 year 3 40000 40000
year 4 24000 35000

optimization function PE WE NM NPR

90000 40000 10000 37000

z 140000
2) product mix
FA SB CCF sf ss sc
25 20 3.553E-15 1 1 0

FA SB CCF
M1 0.4 0.5 0.6 20
M2 0 0.2 0.1 5
M3 0.6 0.3 0.3 21

material constraints
20 <= 20
4 5
21 21

max production available

F 25 <= 50 50
S 20 25 25
C 3.553E-15 0 40

objective function

setup cost 200 50 400

profit 40 30 50

1350
RMC, Inc., is a small firm that produces a variety of chemical products. Three raw
materials are used to produce three products – a fuel additive, solvent base, and a
carpet cleaning fluid. The profit contributions are $40 per ton for fuel additive, $30
per ton for solvent base, and $50 per ton for the carpet cleaning fluid. Each ton of
fuel additive is a blend of 0.4 tons of material 1 and 0.6 tons of material 3. Each ton
of solvent base requires 0.5 tons of material 1, 0.2 tons of material 2, and 0.3 tons of
material 3. Each ton of carpet cleaning fluid is a blend of 0.6 tons of material 1, 0.1
tons of material 2, and 0.3 tons of material 3. RMC has 20 tons of material 1, 5 tons
of material 2, and 21 tons of material 3 and is interested in determining the optimal
production quantities for the upcoming planning period.
Suppose the following are available concerning the setup cost and the maximum
production quantity for each of the three products. Determine the optimal product
mix.
 c1 c2 c3 D1 D2
product mix decision 0 2 1 0 1

c1 c2 c3 customers
0.2 0.4 0.2

startup marginal net maximum

capacity used
cost revenue order
C1 3 2 0.2 3
C2 2 3 0.4 2
C3 0 0.8 0.2 5

capacity used per plane

1 <= 1

maximum order
0 <= 0 3
2 2 2
1 5 5

revenue 2 3 0.8 3
start up cost

objective 4.8
 D3
1

2 0
start up cost
int 0 2 1
bin 0 1 1

cust 1 2 3
startup cos 3 2 0

marginal ne 2 3 0.8
capacity 0.2 0.4 0.2
order 3 2 5

constraint 1 <= 1

0 <= 0 3
2 2 2
1 5 5

startup cos 2
profit 6.8
profit 4.8
Site Selection Problem
Problem set 7
Problem 1