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# Chapter 3

## Applications of Linear and

Integer Programming
Models - 2
1

## 3.5 Applications of Integer

Linear Programming Models
Many real life problems call for at least one integer
decision variable.
There are three types of Integer models:

## Pure integer (AILP)

Mixed integer (MILP)
Binary (BILP)

constraints

## AAny decision situation that can be modeled by

yes/no, good/bad etc., falls into the binary
category.

To illustrate

X 0 If it is not

X 0 If it is not

X 0 If it is not

## The use of binary variables in

constraints

Example
A decision is to be made whether each of three plants should be
built (Yi = 1) or not built (Yi = 0)
Requirement
Binary Representation

## At least 2 plants must be built

Y1 + Y2 + Y3 2
If plant 1 is built, plant 2 must not be built
Y1 + Y2 1
If plant 1 is built, plant 2 must be built
Y1 Y2
One, but not both plants must be built
Y 1 + Y2 = 1
Both or neither plants must be built
Y1 Y2 =0
Plant construction cannot exceed \$17 million
given the costs to build plants are \$5, \$8, \$10 million 5Y1+8Y2+10Y3 17

## The use of binary variables in

constraints

Example - continued

## Two products can be produced at a plant.

Product 1 requires 6 pounds of steel and product 2 requires 9 pounds.
If a plant is built, it should have 2000 pounds of steel available.

## The production of each product should satisfy the steel

availability if the plant is opened, or equal to zero if the plant is
not opened.

## If the plant is built Y1 = 1.

The constraint becomes
6x1 + 9X2 2000

## If the plant is not built Y1 = 0.

The constraint becomes
6x1 + 9X2 0, and thus,
X1 = 0 and X2 = 0

## 3.5.1 Personnel Scheduling Models

Assignments of personnel to jobs under
minimum required coverage is a typical integer
problems.
When resources are available over more than
available in period t to the resources available in
a period t+1.

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## The City of Sunset Beach staffs lifeguards 7 days a

week.
Regulations require that city employees work five days.

## Insurance requirements mandate 1 lifeguard per 8000

average daily attendance on any given day.

9

## Sunset Beach Lifeguard Assignments

Problem Summary
Schedule lifeguard over 5 consecutive days.
Minimize the total number of lifeguards.
Meet the minimum daily lifeguard requirements
Sun. Mon. Tue. Wed. Thr. Fri. Sat.
8
6
5
4
6
7
9

10

## Sunset Beach Lifeguard Assignments

Decision Variables
Xi = the number of lifeguards scheduled to begin on day i
for i=1, 2, ,7 (i=1 is Sunday)

Objective Function
Minimize the total number of lifeguard scheduled

Constraints
Ensure that enough lifeguards are scheduled each day.
11

## Sunset Beach Lifeguard Assignments

To ensure that enough lifeguards are scheduled for
each day, identify which workers are on duty.
For example:

12

## Sunset Beach Lifeguard Assignments

Who works on Friday ?

X2
X3
X4
X5
X6

X3
X4
X5
X6
X1

## Repeat this procedure for each day of the week, and

build the constraints accordingly.
13

## Sunset Beach Lifeguard Assignments

Min X1 + X2 + X3 + X4 + X5 + X6 + X7
S.T.

X1 + X4 + X5 + X6 + X7

X1 + X2 + X5 + X6 + X7 6
X1 +
X2 + X3 + X6 + X7 5
X1 +
X2 + X3 + X4 + X7 4
X1 + X2 + X3 + X4 + X5

X2 + X3 + X4 + X5 + X6

X3 + X4 + X5 + X6 + X7

14

15

16

## Sunset Beach Lifeguard Assignments

OPTIMAL ASSIGNMENTS
LIFEGUARDS
DAY
SUNDAY
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY

Note: An alternate
optimal solution exists.

PRESENT

REQUIRED

BEGIN SHIFT

9
8
6
5
6
7
9

8
6
5
4
6
7
9

1
0
1
1
3
2
2

TOTAL LIFEGUARDS

10

17

## 3.5.2 Project selection Models

These models involve a go/no-go situations, that
can be modeled using binary variables.
Typical elements in such models are:

Budget
Space
Priority conditions

18

## Salem City Council Project Selection

The Salem City Council needs to decide how to
allocate funds to nine projects such that public
support is maximized.
Data reflect costs, resource availabilities, concerns
and priorities the city council has.

19

## Salem City Council Project Selection

Survey results
Project
X1 Hire seven new police officers
X3 Buy two new police cars
Give bonuses to foot patrol officers
X4
X5 Hire assistant fire chief
X6 Restore cuts to sport programs
X7 Restore cuts to school music
X8 Buy new computers for high school

Cost (1000)
\$
400.00
\$
350.00
\$
50.00
\$
100.00
\$
500.00
\$
90.00
\$
220.00
\$
150.00
\$
140.00

Jobs
7
0
1
0
2
1
8
3
2

Points
4176
1774
2513
1928
3607
962
2829
1708
3003

X9

20

## Salem City Council Project Selection

Decision Variables:
Xj- a set of binary variables indicating if a project j is
selected (Xj=1) or not (Xj=0) for j=1,2,..,9.

Objective function:
Maximize the overall point score of the funded projects

Constraints:
See the mathematical model.
21

S.T.

400X1+ 350X2+

50X3+

7X1+

X3+

2X5+

X6+

8X7+

3X8+

2x9

X1+

X2+

X3+

X4

## Either police car or fire truck be purchased

X3+

X5

= 1

Sports funds and music funds must be restored / not restored together
X7 -

## Sports funds and music funds must be

restored before computer equipment
is purchased

10

X8

= 0

X9 0

X7 x8 -

x9

22

## Salem City Council Project selection

=SUMPRODUCT(B4:B12,E4:E1
=SUMPRODUCT(B4:B12,C4:C12)
2)
=SUMPRODUCT(B4:B12,D4:D12)
=SUM(B4:B7)
=B6+B8
=B10-B11
=B10-B12
=B11-B12

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## Supply chain management models integrate the

manufacturing process and the distribution of goods to
customers.
The overall objective of these models is to minimize total
system costs
The requirements concern (among others)

## Appropriate production levels

Maintaining a transportation system to satisfy demand in timely
manner.
24

## Globe Electronics, Inc.

Globe Electronics, Inc. manufactures two styles of
remote control cable boxes, G50 and H90.
Globe runs four production facilities and three
distribution centers.
Each plant operates under unique conditions, thus
has a different fixed operating cost, production
costs, production rate, and production time
available.

25

## Globe Electronics, Inc.

Demand has decreased, and management is
contemplating closing one or more of its facilities.
Management wishes to:

## Develop an optimal distribution policy.

Determine which plant to close (if any).

26

## Globe Electronics, Inc.

Data
Production costs, Times, Availability

Plant
Plant
St.
St.Louis
Louis
New
NewOrleans
Orleans
Denver
Denver

Fixed
FixedCost
Cost
per
perMonth
Month
40
40
35
35
20
20
30
30

Production
ProductionCost
Cost/ /unit
unit
G50
H90
G50
H90
10
14
10
14
12
12
12
12
88
10
10
13
15
13
15

Production
ProductionTime
Time(hr/unit)
(hr/unit) Available
Availablehrhr
G50
H90
per
G50
H90
perMonth
Month
0.06
0.06
640
0.06
0.06
640
0.07
0.08
960
0.07
0.08
960
0.09
0.07
480
0.09
0.07
480
0.05
0.09
640
0.05
0.09
640

## Monthly Demand Projection

G50
G50
G90
G90

Demand
Demand
Cincinnati
Cincinnati Kansas
KansasCitySan
CitySanFrancisco
Francisco

2000
2000
5000
5000

3000
3000
6000
6000

5000
5000
7000
7000

27

Cincinnati

\$200

Kansas
City
300

St.Louis
New Orleans
Denver

100
200
300

100
200
100

San
Francisco
500
400
300
100

## At least 70% of the demand in each distribution center

must be satisfied.
Unit selling price

G50 = \$22;

H90 = \$28.
28

## Ordering raw material

Scheduling personnel

Production
1. Production level for
each product
in each plant.
2. Distribution plan.

Distribution centers
1. Storage
2. Sale and Dissemination
to retail establishments

29

## Globe Electronics, Inc. - Variables

Transportation variables

St. Louis

1
2

G11 , H
G1 , 11
G 2 H12
13 ,
H

Cincinnati

Kansas City

San Francisco

13

G22 , H

22

G 31,

New Orleans

H 31

,1 H 41

G4

Denver

4
30

## Globe Electronics, Inc. - Variables

Production variables in each plant

G1111, H
G11 , 11
22 H
12 G
G
G
11
13 ,
H 12

Cincinnati

G13 GG1112
G22 , H
2
St. Louis
G13 G12
22
G13G12
H 31
,
G
G 31
11
Kansas City
G132
G12
G
11
New Orleans 3
G13
G11
G12 G13
G311
San
Francisco
G
G
12
11
Denver
G13
4
G
G
11
12
G
11
G13
G
G
11
12
Total production of G50 in Philadelphia = GP = G
G1111 + GG1212 + GG1313
13

31

## Globe Electronics, Inc. - Variables

Shipment variables to each distribution center

St. Louis

1
2

G11 , H
G1 , 11
2 H
12
G
13 ,
H

Denver

Cincinnati

Kansas City

San Francisco

13

G22 , H

22

H 31
G 31,

New Orleans

## Total shipment of H90 to Cincinnati = HC = H11 + H21 + H31 +H41

32

Globe Electronics
Model No. 1:
All The Plants Remain Operational

33

## Globe Electronics all plants opened

Objective function
Max Gross Profit = 22(Total G50)+28(Total H90) Total
Production Cost Total transportation Cost =
Max 22G + 28H
G = total number of
G50 produced
H = total number of
H90 produced

34

## Globe Electronics all plants opened

Objective function

## Max Gross Profit = 22(Total G50)+28(Total H90) Total

Production Cost Total transportation Cost =
Max 22G + 28H
10GP 12GSL 8GNO 13GD
Production costs
14HP 12HSL 10HNO 15HD
2G11 3G12 5G13
1G21 1G22 4G23
2G31 2G32 3G33
3G41 1G42 1G43

## 2H11 3H12 5H13

1H21 1H22 4H23
2H31 2H32 3H33
3H41 1H42 1H43

Transportation costs

35

## Globe Electronics all plants opened

Constraints:
Ensure that the amount shipped from a plant equals the amount
produced in a plant (summation constraints).

For G50

For H90

## G11 + G12 + G13 = GP

G21 + G22 + G23 = GSL
G31 + G32 + G33 = GNO
G41 + G42 + G43 = GD

## H11 + H12 + H13 = HP

H21 + H22 + H23 = HSL
H31 + H32 + H33 = HNO
H41 + H42 + H43 = HD

## The amount received by a distribution center is equal to all the

shipments made to this center (summation constraints).

For G50

For H90

G +G +G +G =G

H +H +H +H =H

36

Constraints

## The amount shipped to each distribution center is at least 70% of

its projected demand.
The amount shipped to each distribution center does not exceed
its demand.
Cincinnati:

GC 1400
HC 3500

GC 2000
HC 5000

Kansas City

GKC 2100
HKC 4200

GKC 3000
HKC 6000

San Francisco

GSF 3500
HSF 4900

GSF 5000
HSF 7000

37

Constraints:

## Production time used at each plant cannot exceed the time

available:
.06GP + .0 6HP 640
.07GSL+ .08HSL 960
.09GNO + .07HNO 480
.05GD + .09HD 640
All the variables are non negative

38

## Globe Electronics all plants opened spreadsheet

=F10*F9+F19*F18SUMPRODUCT(G23:G26,F5:F8)
SUMPRODUCT(H23:H26,F14:F17
)SUMPRODUCT(C5:E8,C23:E26)SUMPRODUCT(C14:E17,C23:E26
)-SUM(F23:F26)
=\$I23*\$F5+\$J23*\$F14
Drag to L24:L26

39

## The optimal value of the objective function is \$356,571.43

Note that the fixed cost of operating the plants was not
included in the objective function because all the plants
remain operational.
Subtracting the fixed cost of \$125,000 results in a net
monthly profit of \$231,571.43
Rounding down several non-integer solution values results
in an integral solution with total profit of \$231,550.
This solution may not be optimal, but it is very close to it.
40

## Globe Electronics Model No. 2:

The number of plants that remain
operational in each city is a
decision variable.

41

## Globe Electronics which plant

remains opened?
High set up costs raise the question:
Is it optimal to leave all the plants operational?
Using binary variables the optimal solution
provides suggestions for:

## Production levels for each product in each plant,

Transportation pattern from each plant to distribution
center,
Which plant remains operational.

42

## Globe Electronics which plant

remains opened?
Binary Decision Variables
Yi = a binary variable that describes the number of
operational plants in city i.

Objective function
Subtract the following conditional set up costs from the previous
objective function:
40,000YP + 35,000YSL + 20,000YND + 30,000YD

Constraints
Change the production constraints
.06GP + .0 6HP

640YP

## .07GSL+ .08HSL 960YSL

.05GD + .09HD 640YD

43

## Globe Electronics which plant

remains opened?
=F10*F9+F19*F18SUMPRODUCT(G23:G26,F5:F8) SUMPRODUCT(H23:H26,F14:F17)
-SUMPRODUCT(C5:E8,C23:E26)SUMPRODUCT(C14:E17,C23:E26)
-SUMPRODUCT(F23:F26,A5:A8)

44

## The Philadelphia plant should be closed, while the other

plants work at capacity.
Schedule monthly production according to the quantities
shown in the Excel output.
The net monthly profit will be \$266,083 (after rounding
down the non-integer variable values), which is \$34,544
per month greater than the optimal monthly profit
obtained when all four plants are operational.
45

46

## Many marketing situations can be modeled by linear

programming models.
Typically, such models consist of:

Budget constraints,
Choice of media,
Exposure to target population.

plan.
47

LUMBER 2000.

## A marketing plan for this product is to be developed for the

next quarter.

The product will be promoted using black and white and colored full
Three publications are considered:
Building Today
Lumber Weekly
Timber World

48

Requirements

## A maximum of one ad should be placed in any one issue of any of

the publication during the quarter.

## At least 4 weeks of advertising should be placed in each of the

Building Today and Lumber Weekly publications.

49

## Vertex Software, Inc.

Publication
Frequency
Building Today
5 day/week
Half pg.: \$500
Only B&W
Lumber Weekly Weekly
Color pg.: \$4000
Timber World
Monthly
Color pg.: \$6000

Circulat.
400,000 Full pg.:
\$800

## 250,000 B&W pg.: \$1500

200,000 B&W pg.: \$2000

Attribute
Rating
Computer data-base user
Large Firm (>2M sales)
Location (city / suburb)

Bldng. Lumbr Timber
.50
60%
80
.25
40
80
.15
60
60

90
80
80

.10

50

20

40

50

## Vertex Software, Inc.

Solution
The requirements are:
Stay within a \$90,000 budget for print advertising.
Place no more than 65 ads(=5 x 13 weeks) and no less than 20 ads
(=5 X 4 weeks) in Building Today.
Place no more than 13 and no less than 4 ads in Lumber Weekly.
Place exactly 3 ads in Timber World.
Place at least 50 full-page ads.
Place at least 8 color ads.
publications.

51

Variables

## X1 = number of full page B&W ads placed in

X2 = number of half page B&W ads placed in
X3 = number of full page B&W ads placed in
X4 = number of full page color ads placed in
X5 = number of full page B&W ads placed in
World
X6 = number of full page color ads placed in
World

Building Today
Building Today
Lumber Weekly
Lumber Weekly
Timber
Timber

52

## The objective function measures the effectiveness of the

promotion operation (to be maximized).

## well as on the relative effectiveness per ad.

A special technique (external to this problem) is applied to
evaluate this relative effectiveness.
53

## Vertex Software, Inc.

=SUMPRODUCT(\$B\$6:\$B\$9,C6:C9)
Drag to cells D11 and E11

=C\$11*C\$13*\$B17
Drag across to D17:E17
then down to C19:E19.
Then delete formulas in
cells C17,D19, and E19

54

## Vertex Software, Inc.

The Mathematical Model
Max 102000X1+40800X2+91250X3+182500X4+82000X5+164000X6
S.T.
800X1 + 500X2+ 1500X3+ 4000X4+ 2000X5 + 6000X6
X1 +
X2
X1 +
X2
X3 +
X4
X3 +
X4
X5 +
X6
X1 +
X3 +
X4 +
X5 +
X6
X4 +
X6 8
800X1 + 500X2
1500X3 + 4000X4
2000X5 + 6000X6
All variables non-negative

90000 Budget
# of Building
65
20
# of Lumber
13
4
Full Page
50
Colored

40000

40000
Maximum
40000 spent
In each magazine

55

## Vertex Software, Inc.

VERTEX SOFTWARE, INC.

Totals
Cost
Expsoure Units

Publication

Page Size

Style

## Cost Per Ad Exposure Units

Building Today

Full
Half

B&W
B&W

\$800
102000
\$500
40800
Totals for Building Today

50
0
50

\$40,000
\$0
\$40,000

5100000
0
5100000

Lumber Weekly

Full
Full

B&W
Color

\$1,500
91250
\$4,000
182500
Totals for Lumber Weekly

5
8
13

\$7,500
\$32,000
\$39,500

456250
1460000
1916250

Timber World

Full
Full

B&W
Color

\$2,000
82000
\$6,000
164000
Totals for Timber World

2
1
3

\$4,000
\$6,000
\$10,000

164000
164000
328000

TOTALS

66

\$89,500

7344250

Size Totals

Full Page
Half Page

66
0

\$89,500
\$0

7344250
0

Style Totals

B&W
Color

57
9

\$51,500
\$38,000

5720250
1624000

LIMITS
Budget
Max Build Today
Min Build Today
Max Lum Week
Min Lum Week
# Timber World
Min Full Page
Min Color
Max Any Pub

\$90,000
65
20
13
4
3
50
8
\$40,000

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