University of Pretoria

Department of Industrial and Systems Engineering

Operations Research BOZ 312

Lecturer: Mrs Wilna L Bean

This paper comprises 2 questions. Please answer all the questions.

Marks for each question are indicated in a square frame next to the question in the left
margin.

You are allowed to use variables explicitly given in the test questions without defining
them in your own answers. However, you should define additional variables you use that are

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not explicitly given.

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This is a closed book test.

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rs e Calculators are allowed.
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Complete all 2 questions for 43 marks
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Total time: 90 minutes

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16 May 2019 1 of 7 Semester test 2 Memorandum

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 Test questions
1. Safeway Carriers transports 10kg packets of dried peaches from farms (denoted by i ∈ I ) to markets
(denoted by j ∈ J ) in South Africa. The production capacity (in number of 10kg packets) of each
farm i ∈ I is given by si , while the demand of each market j ∈ J (in number of 10kg packets) is
given by dj .
Packets of dried peaches can be transported with three types of vehicles: 1 ton bakkies, 3 ton light
delivery vehicles, and 8 ton medium delivery vehicles. Transport cost is incurred on a per-trip
basis and is a function of the distance transported and the vehicle type’s cost per kilometer (a
combination of vehicles may be used). The distances between farms i ∈ I and markets j ∈ J are
given tij . In addition, the transportation rate (in R/km) for the three vehicle types are R 9.20/km
for bakkies (1 ton), R 12.70/km for light delivery vehicles (3 ton) and R 19.30/km for medium
delivery vehicles (8 ton).

15 (a) Formulate an Integer Linear Program that will assist Safeway Carriers to satisfy market
demand for dried peaches whilst minimising their own transportation cost.

In addition to the sets given in the question, let K denote the set of vehicle types such that

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
1 1-ton bakkies,


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K = 2 3-ton light delivery vehicles, and

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
3 8-ton medium delivery vehicles.


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We let:
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xijk , the number of 10kg-packets to transport from farm i ∈ I to market j ∈ J in truck
type k ∈ K .
nijk , the number of trips between farm i ∈ I and market j ∈ J with truck type k ∈ K .
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wk , the given weight capacity (in kg) of truck type k ∈ K .

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ck , the given transportation cost (R/km) of truck type k ∈ K .

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We can then proceed to model the problem as follows.

XX X
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min z = tij ck nijk (1)

i∈II j∈J
J k∈K
K
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subject to

10xijk
is

≤ nijk ∀ i ∈ I, j ∈ J, k ∈ K (2)
wk
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XX
xijk ≤ si ∀ i∈I (3)
J k∈K
j∈J K
XX
xijk ≥ dj ∀ j ∈J (4)
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i∈II k∈K
K
xijk , nijk ≥ 0 and integer ∀ i ∈ I, j ∈ J, k ∈ K (5)

The objective of the model in (1) minimises the total cost of transporting peaches, incurring
cost on trips, and not packets. Constraint (2) determines the number of truck trips per truck
type from the number of packages transprted. Capacity constraints are enforced with (3) while
(4) ensures demand is met. Finally, nonnegativity and integrality constraints are introduced
with (5).

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 The following criteria are assessed using a 0-1-2-3 rubric:

1. Definition of decision variables.

2. Objective function.
3. Determine the number of truck trips per truck type.
4. Limit available farm supply and satisfy market demand.
5. Accessibility of information.

An alternative formulation would define xij as the number of 10kg-packets to transport from
farm i ∈ I to market j ∈ J . The formulation can then be adapted as follows:

XX X
min z = tij ck nijk (6)
i∈II j∈J
J k∈K
K

subject to

m
w1 nij1 w2 nij2 w3 nij3

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xij = + + ∀ i ∈ I, j ∈ J (7)
10 10 10

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X
xij ≤ si ∀ i∈I (8)

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J
j∈J

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X
xij ≥ dj rs e ∀ j ∈J (9)
i∈II
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xij ≥ 0 and integer ∀ i ∈ I, j ∈ J (10)
nijk ≥ 0 and integer ∀ i ∈ I, j ∈ J, k ∈ K (11)
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3 (b) What constraint(s) would you include to ensure that if any peaches are transported in a
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bakkie between a farm and market pair, then no peaches may be transported with a light
delivery vehicle between that same farm and market pair (For example, if any peaches are
transported in a bakkie between farm 1 and market 2, then no peaches may be transported
in a light delivery vehicle between farm 1 and market 2).
ed d
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xij1 ≤ M (1 − yij ) ∀ i ∈ I, j ∈ J (12)

xij2 ≤ M yij ∀ i ∈ I, j ∈ J (13)
yij ∈ {0, 1} ∀ i ∈ I, j ∈ J (14)
is

The If-Then construct is included in constraints (12) through (14) where M is a sufficiently
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large number.
required logical adapted
if: f (x) > 0 ⇒ xij1 > 0 ⇒ xij1 > 0
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then: g(x) ≥ 0 ⇒ xij2 ≤ 0 ⇒ −xij2 ≥ 0

The following criteria are assessed using a 0-1-2-3 rubric:

1. Correct application of If-Then construct.

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18 (c) Safeway Carriers is planning to open a centralised distribution centre at one of three potential
locations, denoted by l ∈ L = {1, 2, 3}. After the distribution facility is opened no direct
shipment between farms and markets will be allowed any more (i.e. all packets of peaches
will be transported from farms to the centralised distribution centre and then transported
from the centralised distribution centre to the different markets).
The estimated cost of opening a distribution centre at potential facility location l ∈ L , where
I = {1, 2, 3}, is given by Ol . In addition, the distance between potential facility location
l ∈ L and farm i ∈ I is given by tFil , and the distance between potential facility location l ∈ L
and market j ∈ J is given by tM lj .
How would you modify your formulation in Question 1(a) to help Safeway Carriers decide
where to open the centralised distribution centre in order to satisfy market demand at the
lowest possible transportation and warehousing cost? Show your full model formulation.

We define the following new variables (some of the parameters defined in question 1(a) will
also be used here, but I don’t have to redefine them):

xFilk , the number of 10kg-packets to transport from farm i ∈ I to the DC at location

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l ∈ L in truck type k ∈ K .

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xM
ljk , the number of 10kg-packets to transport from the DC at location l ∈ L to market

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j ∈ J in truck type k ∈ K .

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nFilk , the number of trips between farm i ∈ I and the DC at location l ∈ L with truck

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type k ∈ K . rs e
nM
ljk , the number of trips between the DC at location l ∈ L and market j ∈ J and with
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truck
( type k ∈ K .
1 if a DC is opened at location l ∈ L .
bl ,
0 otherwise
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!
XX X X X
min z = ck tFil nFilk + ck tM M
lj nljk + Ol bl (15)
L k∈K
l∈L K i∈II J
j∈J L
l∈L
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 subject to

10xFilk
≤ nFilk ∀ i ∈ I , l ∈ L , k ∈ K (16)
wk
10xM
ljk
≤ nMljk ∀ l ∈ L, j ∈ J , k ∈ K
wk
(17)
XX
xFilk ≤ si ∀ i∈I (18)
L k∈K
l∈L K
XX
xM
ljk ≥ dj ∀ j ∈J (19)
L k∈K
l∈L K
X
bl = 1 (20)
L
l∈L
XX
xFilk ≤ M bl ∀ l∈L (21)
i∈II k∈K
K
XX XX
xFilk ≥ xM
ljk ∀ l∈L (22)

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i∈II k∈K
K J k∈K
j∈J K

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xFilk , nFilk ≥0 and integer ∀ i ∈ I, l ∈ K, k ∈ K

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(23)

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xM M
ljk , nljk ≥0 and integer ∀ l ∈ L, j ∈ J , k ∈ K

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rs e (24)
bl ∈ {0, 1} ∀ l∈L (25)
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The objective of the model in (15) minimises the total cost of opening the DC and transporting
peaches, incurring cost on trips, and not packets. Constraints (16) and (17) determine the
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number of truck trips per truck type from the number of packages transported. Capacity
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constraints are enforced with (18) while (19) ensures demand is met. Constraint (20) ensures
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that only one DC is opended and constraint (21) ensures that when peaches are sent to a DC,
it is indeed open. Constraint (22) is included to ensure that inflow and outflow of the DC
are balanced. Finally, nonnegativity, integrality and binary conditions are introduced with
(23) through (25).
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The following criteria are assessed using a 0-1-2-3 rubric:

1. Definition of decision variables.

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2. Objective function.
3. Adapted constraints to determine the number of truck trips, limit available supply from farms,
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and satisfy market demand.

4. Ensure that only one distribution centre is opened and used (linking of variables).
5. Distribution centre flow conservation.
6. Accessibility of information.
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 7 2. Use the branch-and-bound method to solve the following Mixed Integer Linear Program (MILP).

min z = 2x1 + 4x2 (26)

subject to

3x1 − 2x2 ≥ 6 (27)

x1 + x2 ≥ 4 (28)
−2x1 + 4x2 ≥ 8 (29)
x1 ≥ 0 (30)
x2 ≥ 0 and integer (31)

Copy the partially completed branch-and-bound tree (provided below) into your answer book and
use the branch-and-bound and graphical solution techniques to find the optimal solution to the
MILP provided above. You should add additional branches to the tree where necessary. Show all
your calculations.

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 The branch-and-bound tree is shown in the figure below.

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The optimal solution to the model is z = 30 23 ; x1 = 5 13 ; x2 = 5. The solution of LP2 is calculated

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using the graphical solution.

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LP2 solution rs e
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The solution space for LP2 is shown below. The solution of LP2 is z = 30 32 ; x1 = 5 13 ; x2 = 5. This
is the optimal solution.
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??? end of paper ???

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16 May 2019 7 of 7 Semester test 2 Memorandum

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