INTEGER

PROGRAMMING
16 Sept 2013
Integer Linear Programming
In many practical problems, the decision variables
actually make sense only if they have integer values
X Assumption of Divisibility
Two types:
MIXED Integer Programming only some of the variables are
required to have integer values
BINARY Integer Programming yes-or-no decisions

Binary Integer Programming
- A community council must decide which recreation facilities to
construct in its community.
- Objective: construct facilities that will maximize the expected
daily usage by the residents, subject to land and cost limitations.





- Construction Budget : $120,000 ; Available land: 12 acres
- Swimming pool and tennis center must be built on the same part
of land parcel only one of these two can be constructed

Recreation
Facility
Expected Usage
(People/day) Cost
Land Requirements
(acres)
Swimming pool 300 $35,000 4
Tennis center 90 10,000 2
Athletic field 400 25,000 7
Gymnasium 150 90,000 3
BIP Model Formulation

Let: X
j
=



Objective 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
X
1
+ X
2
1
X
j
1, X
j
0

1 if decision j is Yes
0 if decision j is No
( j = 1, 2, 3, 4)
where
X
1
= construction of swimming pool X
3
= construction of athletic field
X
2
= construction of tennis center X
4
= construction of gymnasium
BIP
Companies frequently face the situation of selecting one or
more R&D projects or investment opportunities from among
several competing projects. Consider the list below: if $25
million is available, which projects should be selected?

Competing Projects Cost ($ million) Expected Utility
Crime prevention (X
1
) 5 20
Housing improvement (X
2
) 20 18
Health-care center (X
3
) 12 13
Geriatic research (X
4
) 7 30
Gifted child education (X
5
) 4 15
BIP Model Formulation




Maximize Z = 20X
1
+ 18X
2
+ 13X
3
+ 30X
4
+ 15X
5

Subject to

5X
1
+ 20X
2
+ 12X
3
+ 7X
4
+ 4X
5
25
X
j
1, X
j
0


Competing Projects Cost ($ million) Expected Utility
Crime prevention (X
1
) 5 20
Housing improvement (X
2
) 20 18
Health-care center (X
3
) 12 13
Geriatic research (X
4
) 7 30
Gifted child education (X
5
) 4 15
BIP Applications
Investment Analysis
Should we make a certain fixed investment?
Should we add a new production line (raw material) or continue
obtaining it from supplier?
Site Selection
Designing a Production and Distribution Network
Should a certain plant (distribution center) remain open?
Should a certain site be selected for a new distribution center?
Scheduling Interrelated Activities
Mixed Integer Programming
Eastland Corporation is planning to produce at least 900
pollution control valves. Three production lines are
available with the setup costs, unit processing (variable)
costs, and capacities given below. Find which lines to use
in order to minimize the total cost.

Line Setup Cost
Unit Processing
Cost
Maximum
Capacity
A $850 $20 500
B 150 58 700
C 520 36 620
MIP
Let X
A
= quantities to be produced on line A

X
B
X
c
d
A
=
d
B

d
C

Minimize cost Z = (850d
A
+ 150d
B
+ 520d
C
) + (20X
A
+ 58X
B
+ 36X
C
)
Subject to

X
A
+ X
B
+ X
c
900 d
A
, d
B,
d
C
1

X
A
500d
A
d
A
, d
B,
d
C
0

X
B
700d
B

X
c
620d
C


1 if Line A is to be used
0 if not
Fixed cost Variable cost
Assignment
The production of model A involves $2,000 in fixed
cost and $50 in variable cost. The production of model B
involves $4,000 in fixed cost and $30 in per unit variable
cost. Finally, model C requires $10,000 of fixed cost and
$25 variable cost per unit.
The production time required for each model each
is: four hours for A, six for B, and seven for C. The total
available production time is 44,000 hours per quarter. The
company must produce at least 200 units of model C. The
company sells model A for $75, model B for $50, and $33
for model C.
Formulate the model.