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May 9, 2020
Contents
1 Problem 1 2
2 Problem 2 4
1
Ho Chi Minh City International University Cplex Practice
Industrial Systems Engineering Department Lecturer: Phan Nguyen Ky Phuc
1 Problem 1
Web Mercantile sells many household products through an on-line catalog. The company needs substantial
warehouse space for storing its goods. Plans now are being made for leasing warehouse storage space over
the next 5 months. Just how much space will be required in each of these months is known. However, since
these space requirements are quite different, it may be most economical to lease only the amount needed each
month on a month- by-month basis. On the other hand, the additional cost for leasing space for additional
months is much less than for the first month, so it may be less expensive to lease the maximum amount
needed for the entire 5 months. Another option is the intermediate approach of changing the total amount
of space leased (by adding a new lease and/or having an old lease expire). The space requirement and the
leasing costs for the various leasing periods are as follows:
Index
t index of time t = 1 · · · T
j index of leasing period j = 1 · · · J
Parameters
st : be the minimum required space at time t
cj : be the cost per square foot leased for the contract covering j periods
Decision variables
Xtj be the binary variable, Xjt = 1 if the contract covering j periods starts at time t otherwise; Xtj = 0
Rtj be the area rented by the contract covering j periods starting at time t, if Xtj = 0 then Rtj = 0
Vjtk be the auxiliary variable, Vtjk = Rtj if the period k is covered by the contract starting at time t covering
j periods otherwise; Vtjk = 0
Mathematical Models
J
X
min cj × Rtj
j=1
subject to
2 Problem 2
Problem statement There are 2 types of orders: small and large orders
• The order can only be processed after its required materials are available. In other words, the avail-
ability of order material decides the release date
• Each order has it due date and it will incur penalty if the order is finished after due date.
Index
t: index of period t = 1 · · · T
j: index of order j = 1 · · · J
Parameters
rj : release date of order j
dj : due date of order j
pj : processing time of order j
α: set of small orders
β : set of large orders
h: number of available hours for a production line
cj : penalty cost if the order j is finishing late
f : smallest fraction that one large order can be split
Variables
Xjt : binary variable Xjt = 1 if the order j is processed on period t, otherwise; Xjt = 0
Yjt : the fraction of the order j is processed on period t
Zj : binary variable Zj = 1 if the order j is finished after its due date dj , otherwise; Zj = 0
T P : total penalty cost of late orders
Mathematical Models
J
X
min cj × Zj
j=1
subject to
Order allocation constraints
T
X
Xjt = 1 ∀j ∈ α, t ≥ rj
t=1
T
X
Yjt = 1 ∀j ∈ β, t ≥ rj
t=1
Xjt = Yjt ∀j ∈ α
Xjt ≥ Yjt ∀j ∈ β, ∀t
Yjt ≥ f × Xjt ∀j ∈ β, ∀t
Tardiness constraints
T
X
Zj = Xjt ∀j ∈ α
t≥Dj +1
T
X
Zj ≥ Yjt ∀j ∈ β
t≥Dj +1
T
X
Zj ≤ Xjt ∀j ∈ β
t≥Dj +1
Capacity constraints
J
X
pj × Yjt ≤ h ∗ N ∀t = 1 · · · T
j=1
Example
Given data below and it is known that the company has 2 production lines. Each line can operate 9 hours
/ day. The minimum split fraction f = 0.2. Find the production planning for the firm