DISCRETE OPTIMIZATION - 2AGI ENIT 2016-2017

Homework Assignment #1

Exercise 1.

Ford Motor Company is considering the production of 3 types of vehicles: Sedan, Van and
Sports. For each type of vehicle, the resources required and the estimated profit are given in
Table 1. Currently, 6000 tons of metal sheets and 60 000 hours of labor are available. To be
economically profitable, Ford has to produce 1000 units for each type of vehicle. Formulate
an integer program that allows for maximizing Ford’s profit.

Table 1: Resources and profits for the 3 types of vehicles

Sedan Van Sports
Metal sheets (tons) 1.5 3 5
Labor (hours) 30 25 40
Profits ($) 2000 3000 4000

Exercise 2.

Houseco Developers is considering erecting three office buildings. The time required in order
to complete each building and the number of workers required to be on the job at all times are
given in Table 2:

Table 2: Resources required for the 3 types of buildings

Duration of Number of workers
Project (years) required
Building 1 2 30
Building 2 2 20
Building 3 3 20

Once a building is completed, it brings in the following amount of rent per year: building 1,
$50,000; building 2, $30,000; building 3, $40,000. Houseco faces the following constraints:

1. During each year, 60 workers are available.

2. At most one building can be started during any year.
3. Building 2 must be completed by the end of year 4.

Formulate an IP that will maximize the total rent earned by Houseco through the end of year 4.

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DISCRETE OPTIMIZATION - 2AGI ENIT 2016-2017

Exercise 3.

Consider the capital investment problem where 5 projects have been preselected to be
undertaken in the next 3 years. The lifetime of each project is exactly one year and each project
can be undertaken only once during the 3-year period.

The required investments, available budget and cash flows are indicated on Table 3 (in millions
of dollars). Notice that the total cash flow estimated for each project is independent of the
execution year.

Table 3: Data relative to the different projects

Project 1 Project 2 Project 3 Project 4 Project 5 Budget
Year 1 5 4 3 7 8 25
Year 2 1 7 9 4 6 25
Year 3 8 10 2 1 10 25
Cash flow 20 40 20 15 30

The problem consists in determining which projects to undertake, over the 3-year horizon, so
as to maximize total cash flow.

1. Give the mathematical formulation of this problem.

2. Propose a formulation to express the following restrictions:
a. If project 1 is selected during the 1st year then project 3 has to be selected the
following year.
b. At most 2 projects can be undertaken during year 3.
c. During year 2, at least one of projects 1 and 5 has to be undertaken.

Exercise 4.

Formulate the following problem as an integer program:

Max z = 3 x 1 + 2 f(x 2 ) + 2 x 3 + 3 g(x 4 )
S. to
2 x 1 - x 2 + x 3 + 3 x 4 ≤ 15
At least one of the following two constraints has to be verified :
x1 + x2 + x3 + x4 ≤ 4
3 x1 - x2 - x3 + x4 ≤ 3
At least three of the following four constraints have to be verified :
5 x 1 + 3 x 2 + 3 x 3 - x 4 ≤ 10
2 x 1 + 5 x 2 - x 3 + 3 x 4 ≤ 10
- x 1 + 3 x 2 + 5 x 3 + 3 x 4 ≤ 10
3 x 1 - x 2 + 3 x 3 + 5 x 4 ≤ 10
x 3 = 1 or 2 or 3
x j ≥ 0, j = 1, 2, 3, 4
where
f(x 2 ) = - 5 + 3 x 2 if x 2 > 0 and f(x 2 ) = 0 if x 2 = 0
and g(x 4 ) = - 3 + 5 x 4 if x 4 > 0 and g(x 4 ) = 0 if x 4 = 0

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