CH 032

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)
The use of binary variables in

constraints
AAny decision situation that can be modeled by

yes/no, good/bad etc., falls into the binary
category.
To illustrate
1 If a new health care plan is adopted

X 0 If it is not
1 If a new police station is built downtown

X 0 If it is not
1 If a particular constraint must hold

X 0 If it is not

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

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.
6X1 + 9X2 2000Y1
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
one period, linking constraint link the resources
available in period t to the resources available in
a period t+1.
You
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Sunset Beach Lifeguard Assignments
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.
The city wants to employ as few lifeguards as possible.

9
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
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

To ensure that enough lifeguards are scheduled for
each day, identify which workers are on duty.
For example:
12

Who works on Friday ?
Who works on Saturday ?

X2
X3
X4
X5
X6
X3
X4
X5
X6
X1
Mon Tue. Wed. Thu. Fri. Sat Sun.
Repeat this procedure for each day of the week, and

build the constraints accordingly.
13

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
All the variables are non negative integers
14
15
16

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

Survey results
Project
X1 Hire seven new police officers
X2 Modernize police headquarters
X3 Buy two new police cars
Give bonuses to foot patrol officers
X4
Buy new fire truck/support equipment
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
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
The Mathematical Model
(Xi = 0,1 for i=1, 2, 9)
Max 4176X1+1774X2+ 2513X3+1928X4+3607X5+962X6+2829X7+1708X8+3003X9

S.T.
The maximum amounts of funds to be allocated is $900,000

400X1+ 350X2+
50X3+
100X4+ 500X5+ 90X6+ 220X7+ 150X8+ 140X9 900
The number of new jobs created must be at least 10

7X1+
X3+
2X5+
X6+
8X7+
3X8+
2x9
The number of police-related activities selected is at most 3 (out of 4)

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
23
3.5.3 Supply Chain Management
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

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
Data
Production costs, Times, Availability
Plant
Plant
Philadelphia
Philadelphia
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
Transportation Costs per 100 units

Cincinnati
Philadelphia
$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
The Globe problem
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
Philadelphia
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

Production variables in each plant
Philadelphia
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

Shipment variables to each distribution center
Philadelphia
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
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
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
G11 + G21 + G31 + G41 = GC
H11 + H21 + H31 + H41 = HC
G12 + G22 + G32 + G42 = GKC
H12 + H22 + H32 + H42 = HKC
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
Globe Electronics 1 - Summary
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

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
.09GNO + .07HNO 480YNO
.07GSL+ .08HSL 960YSL

.05GD + .09HD 640YD
43

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
Globe Electronics 2 - Summary
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
Appendix 3.4 (CD): Advertising Models
46
Appendix 3.4 (CD): Advertising Models
Many marketing situations can be modeled by linear

programming models.
Typically, such models consist of:
Budget constraints,
Deadlines constraints,
Choice of media,
Exposure to target population.
The objective is to achieve the most effective advertising

plan.
47
Vertex Software, Inc.
Vertex Software has developed a new software product,

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
page ads.
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 50 full-page ads should appear during the quarter.
at least 8 color ads should appear during the quarter.
One ad should appear in each issue of Timber World.
At least 4 weeks of advertising should be placed in each of the

Building Today and Lumber Weekly publications.
No more than $ 40000 should be spent on advertising in any one of

the trade publications.
49

Circulation and advertising costs
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.
Cost/Ad
400,000 Full pg.:
$800
250,000 B&W pg.: $1500

200,000 B&W pg.: $2000
Key reader attitudes

Attribute
Rating
Computer data-base user
Large Firm (>2M sales)
Location (city / suburb)
Percentage of Readership
Bldng. Lumbr Timber
.50
60%
80
.25
40
80
.15
60
60
90
80
80
Age of firm (>5 years)
.10
50
20
40
50
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.
Spend no more than $40,000 on advertisement in any one of the trade
publications.
51
Variables
X1 = number of full page B&W ads placed in

X2 = number of half page B&W ads placed in
X4 = number of full page color 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
The objective function measures the effectiveness of the

promotion operation (to be maximized).
It depends on the number of ads in each publication, as
well as on the relative effectiveness per ad.

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

=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

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
Today ads
20
# of Lumber
13
Weekly ads
4
3 Timber World ads
Full Page
50
Colored
40000
40000
Maximum
40000 spent
In each magazine
55

VERTEX SOFTWARE, INC.
Totals
Cost
Expsoure Units
Publication
Page Size
Style
Cost Per Ad Exposure Units
Ads
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
56
Copyright 2002 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that named in
Section 117 of the United States Copyright Act without the
express written consent of the copyright owner is unlawful.
Requests for further information should be addressed to the
Permissions Department, John Wiley & Sons, Inc. Adopters of
the textbook are granted permission to make back-up copies for
their own use only, to make copies for distribution to students of
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best suit their instructional needs. Under no circumstances can
copies be made for resale. The Publisher assumes no
responsibility for errors, omissions, or damages, caused by the
use of these programs or from the use of the information
contained herein.
57

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Chapter 3

Applications of Linear and

3.5 Applications of Integer

Pure integer (AILP)

The use of binary variables in

AAny decision situation that can be modeled by

1 If a new health care plan is adopted

1 If a new police station is built downtown

1 If a particular constraint must hold

The use of binary variables in

At least 2 plants must be built

The use of binary variables in

Two products can be produced at a plant.

The production of each product should satisfy the steel

6X1 + 9X2 2000Y1

If the plant is built Y1 = 1.

If the plant is not built Y1 = 0.

3.5.1 Personnel Scheduling Models

You look so funny

Sunset Beach Lifeguard Assignments

The City of Sunset Beach staffs lifeguards 7 days a

Insurance requirements mandate 1 lifeguard per 8000

The city wants to employ as few lifeguards as possible.

Sunset Beach Lifeguard Assignments

Sunset Beach Lifeguard Assignments

Sunset Beach Lifeguard Assignments

Sunset Beach Lifeguard Assignments

Who works on Saturday ?

Mon Tue. Wed. Thu. Fri. Sat Sun.

Repeat this procedure for each day of the week, and

Sunset Beach Lifeguard Assignments

All the variables are non negative integers

Sunset Beach Lifeguard Assignments

Sunset Beach Lifeguard Assignments

Sunset Beach Lifeguard Assignments

3.5.2 Project selection Models

Salem City Council Project Selection

Salem City Council Project Selection

Salem City Council Project Selection

Salem City Council Project Selection

The Mathematical Model

(Xi = 0,1 for i=1, 2, 9)

Max 4176X1+1774X2+ 2513X3+1928X4+3607X5+962X6+2829X7+1708X8+3003X9

The maximum amounts of funds to be allocated is $900,000

100X4+ 500X5+ 90X6+ 220X7+ 150X8+ 140X9 900

The number of new jobs created must be at least 10

The number of police-related activities selected is at most 3 (out of 4)

Either police car or fire truck be purchased

Sports funds and music funds must be

Salem City Council Project selection

3.5.3 Supply Chain Management

Supply chain management models integrate the

Appropriate production levels

Globe Electronics, Inc.

Globe Electronics, Inc.

Develop an optimal distribution policy.

Globe Electronics, Inc.

Monthly Demand Projection

Globe Electronics, Inc.

Transportation Costs per 100 units

At least 70% of the demand in each distribution center

Globe Electronics, Inc.

The Globe problem