Integer Programming: Chapter Topics

Chapter Topics
Integer Programming
 Integer Programming (IP) Models
 Integer Programming Graphical Solution

 Computer Solution of Integer Programming Problems
With Excel and QM for Windows
Chapter 5  0-1 Integer Programming Modeling Examples
Copyright © 2016 Pearson Education, Inc. 5-1 Copyright © 2016 Pearson Education, Inc. 5-2
Integer Programming Models A Total Integer Model (1 of 2)

Types of Models
■ Machine shop obtaining new presses and lathes.
Total Integer Model: All decision variables required to have ■ Marginal profitability: each press $100/day; each lathe $150/day.
integer solution values.
■ Resource constraints: $40,000 budget, 200 sq. ft. floor space.
0-1 Integer Model: All decision variables required to have ■ Machine purchase prices and space requirements:
integer values of zero or one.
Required
Mixed Integer Model: Some of the decision variables (but not all) Machine Floor Space (ft.2) Purchase Price
required to have integer values.
Press 15 $8,000
Lathe 30 4,000
A Total Integer Model (2 of 2) A 0 - 1 Integer Model (1 of 2)
Integer Programming Model: ■ Recreation facilities selection to maximize daily usage by residents.
■ Resource constraints: $120,000 budget; 12 acres of land.

Maximize Z = $100x1 + $150x2 ■ Selection constraint: either swimming pool or tennis center (not
subject to: both).
$8,000x1 + 4,000x2  $40,000
Expected Usage Land Requirement
15x1 + 30x2  200 ft2 Recreation
(people/day) Cost ($) (acres)
Facility
x1, x2  0 and integer Swimming pool 300 35,000 4
x1 = number of presses Tennis Center 90 10,000 2
x2 = number of lathes Athletic field 400 25,000 7
Gymnasium 150 90,000 3
1
A 0 - 1 Integer Model (2 of 2) A Mixed Integer Model (1 of 2)
Integer Programming Model: ■ $250,000 available for investments providing greatest return after
Maximize Z = 300x1 + 90x2 + 400x3 + 150x4 one year.
subject to: ■ Data:
$35,000x1 + 10,000x2 + 25,000x3 + 90,000x4  $120,000  Condominium cost $50,000/unit; $9,000 profit if sold after one
year.
4x1 + 2x2 + 7x3 + 3x4  12 acres
 Land cost $12,000/ acre; $1,500 profit if sold after one year.
x1 + x2  1 facility
 Municipal bond cost $8,000/bond; $1,000 profit if sold after
x1, x2, x3, x4 = 0 or 1 one year.
x1 = construction of a swimming pool  Only 4 condominiums, 15 acres of land, and 20 municipal bonds
x2 = construction of a tennis center available.
x3 = construction of an athletic field
x4 = construction of a gymnasium
A Mixed Integer Model (2 of 2) Integer Programming Graphical Solution
Integer Programming Model:

Maximize Z = $9,000x1 + 1,500x2 + 1,000x3 ■ Rounding non-integer solution values up to the nearest integer
subject to: value can result in an infeasible solution.
50,000x1 + 12,000x2 + 8,000x3  $250,000
x1  4 condominiums ■ A feasible solution is ensured by rounding down non-integer
x2  15 acres solution values but may result in a less than optimal (sub-optimal)
x3  20 bonds solution.
x2  0
x1, x3  0 and integer
x1 = condominiums purchased
x2 = acres of land purchased
x3 = bonds purchased
Integer Programming Example Branch and Bound Method

Graphical Solution of Machine Shop Model
■ Traditional approach to solving integer programming problems.
Maximize Z = $100x1 + $150x2  Feasible solutions can be partitioned into smaller subsets
subject to:
8,000x1 + 4,000x2  $40,000  Smaller subsets evaluated until best solution is found.
15x1 + 30x2  200 ft2  Method is a tedious and complex mathematical process.
Optimal Solution: ■ Excel and QM for Windows used in this book.

Z = $1,055.56
x1 = 2.22 presses
x2 = 5.55 lathes ■ See book’s web site Module C – “Integer Programming: the
Branch and Bound Method” for detailed description of this
method.
Figure 5.1 Feasible solution space with integer solution points

2
Computer Solution of IP Problems Computer Solution of IP Problems
0 – 1 Model with Excel (1 of 5) 0 – 1 Model with Excel (2 of 5)
Recreational Facilities Example:
Maximize Z = 300x1 + 90x2 + 400x3 + 150x4

subject to:
$35,000x1 + 10,000x2 + 25,000x3 + 90,000x4  $120,000
4x1 + 2x2 + 7x3 + 3x4  12 acres =C7*C12+D7*C13
Decision variables—
x1 + x2  1 facility C12:C15
+E7*C14+F7*C15
x1, x2, x3, x4 = 0 or 1

Exhibit 5.2

0 – 1 Model with Excel (3 of 5) 0 – 1 Model with Excel (4 of 5)
Restricts variables, C12:C15,

to integer and 0-1 values
Click on “bin” for 0-1.
Exhibit 5.3 Exhibit 5.4


0 – 1 Model with Excel (5 of 5) 0 – 1 Model with QM for Windows (1 of 3)
Recreational Facilities Example:

Maximize Z = 300x1 + 90x2 + 400x3 + 150x4
subject to:
Deactivate
$35,000x1 + 10,000x2 + 25,000x3 + 90,000x4  $120,000
4x1 + 2x2 + 7x3 + 3x4  12 acres
x1 + x2  1 facility
x1, x2, x3, x4 = 0 or 1
Return to solver Exhibit 5.5

window
3
0 – 1 Model with QM for Windows (2 of 3) 0 – 1 Model with QM for Windows (3 of 3)
Click to solve.
Variable type Click on “0/1” to make variables 0 or 1.
Exhibit 5.6
Exhibit 5.7

Total Integer Model with Excel (1 of 6) Total Integer Model with Excel (2 of 6)
Integer Programming Model of Machine Shop:
Maximize Z = $100x1 + $150x2

subject to:
8,000x1 + 4,000x2  $40,000
15x1 + 30x2  200 ft2
Solution:
x1, x2  0 and integer X1=1 swimming pool
X2=0 tennis center
X3=1 athletic field
X4=0 gymnasium
Z=700 people per day usage
Exhibit 5.8

Objective function
Integer variables
Slack, =G6-E6
Decision variables—
B10:B11 =C6*B10+D6*B11
Exhibit 5.10
Exhibit 5.9
4
Click on “int”
Integer Solution
Exhibit 5.11 Exhibit 5.12


Mixed Integer Model with Excel (1 of 3) Total Integer Model with Excel (2 of 3)
Integer Programming Model for Investments Problem:

Maximize Z = $9,000x1 + 1,500x2 + 1,000x3
subject to:
50,000x1 + 12,000x2 + 8,000x3  $250,000
x1  4 condominiums Available to invest
x2  15 acres
x3  20 bonds
x2  0
=C4*B8+D4*B9+E4*B10
Exhibit 5.13

Solution of Total Integer Model with Excel (3 of 3) Mixed Integer Model with QM for Windows (1 of 2)
Exhibit 5.14
Integer requirement for Constraints for acres,

condos (x1) and bonds (x3) condos, and bonds
Click on “Real”
Exhibit 5.15
5
Computer Solution of IP Problems 0 – 1 Integer Programming Modeling Examples
Mixed Integer Model with QM for Windows (2 of 2) Capital Budgeting Example (1 of 4)
■ University bookstore expansion project.
■ Not enough space available for both a computer department and a
clothing department.
NPV Return Project Costs per Year ($1000)

Project
($1,000s) 1 2 3
1. Web site $120 $55 $40 $25

2. Warehouse 85 45 35 20
3. Clothing department 105 60 25 --
4. Computer department 140 50 35 30
5. ATMs 75 30 30 --
Available funds per year 150 110 60
Exhibit 5.16
0 – 1 Integer Programming Modeling Examples 0 – 1 Integer Programming Modeling Examples

Capital Budgeting Example (2 of 4) Capital Budgeting Example (3 of 4)
x1 = selection of web site project
x2 = selection of warehouse project
x3 = selection clothing department project
x4 = selection of computer department project
x5 = selection of ATM project
xi = 1 if project “i” is selected, 0 if project “i” is not selected
Maximize Z = $120x1 + $85x2 + $105x3 + $140x4 + $70x5

subject to:
55x1 + 45x2 + 60x3 + 50x4 + 30x5  150
40x1 + 35x2 + 25x3 + 35x4 + 30x5  110
25x1 + 20x2 + 30x4  60 =SUMPRODUCT(C7:C11,E7:E11)
x3 + x4  1 =C9+C10
xi = 0 or 1 Exhibit 5.17

Capital Budgeting Example (4 of 4) Fixed Charge and Facility Example (1 of 4)
Which of six farms should be purchased that will meet current
Exhibit 5.18 production capacity at minimum total cost, including annual fixed
costs and shipping costs?
0-1 integer Available Plant ($/ton shipped)
restriction Plant Capacity
(tons,1000s) Farm A B C
A 12
B 10 1 18 15 12
C 14 2 13 10 17
Mutually exclusive
constraint Farms Annual Fixed Projected Annual 3 16 14 18
Costs Harvest (tons, 1000s) 4 19 15 16
($1000)
1 405 11.2 5 17 19 12
2 390 10.5 6 14 16 12
3 450 12.8
4 368 9.3
5 520 10.8
6 465 9.6
6
Fixed Charge and Facility Example (2 of 4) Fixed Charge and Facility Example (3 of 4)
yi = 0 if farm i is not selected, and 1 if farm i is selected; i = 1,2,3,4,5,6 Objective function
xij = potatoes (1000 tons) shipped from farm I to plant j; j = A,B,C.
Minimize Z = 18x1A+ 15x1B+ 12x1C+ 13x2A+ 10x2B+ 17x2C+ 16x3+ 14x3B
+18x3C+ 19x4A+ 15x4b+ 16x4C+ 17x5A+ 19x5B+12x5C+ 14x6A
+ 16x6B+ 12x6C+ 405y1+ 390y2+ 450y3+ 368y4+ 520y5+ 465y6
subject to:
x1A + x1B + x1B - 11.2y1 ≤ 0 x2A + x2B + x2C -10.5y2 ≤ 0
x3A + x3A + x3C - 12.8y3 ≤ 0 x4A + x4b + x4C - 9.3y4 ≤ 0
x5A + x5B + x5B - 10.8y5 ≤ 0 x6A + x6B + X6C - 9.6y6 ≤ 0
=G10-C22*F10
x1A + x2A + x3A + x4A + x5A + x6A = 12
x1B + x2B + x3B + x4B + x5B + x6B = 10 =SUM(C5:C10) =C10+D10+E10
x1C + x2C + x3C + x4C + x5C + x6C = 14
xij ≥ 0 yi = 0 or 1
Exhibit 5.19

Fixed Charge and Facility Example (4 of 4) Set Covering Example (1 of 4)
APS wants to construct the minimum set of new hubs in these twelve
cities such that there is a hub within 300 miles of every city:
Exhibit 5.20 Cities Cities within 300 miles
0-1 integer 1. Atlanta Atlanta, Charlotte, Nashville
restriction 2. Boston Boston, New York
3. Charlotte Atlanta, Charlotte, Richmond
Plant capacity 4. Cincinnati Cincinnati, Detroit, Indianapolis, Nashville, Pittsburgh
constraints 5. Detroit Cincinnati, Detroit, Indianapolis, Milwaukee, Pittsburgh
6. Indianapolis Cincinnati, Detroit, Indianapolis, Milwaukee, Nashville, St. Louis
Harvest constraints 7. Milwaukee Detroit, Indianapolis, Milwaukee
8. Nashville Atlanta, Cincinnati, Indianapolis, Nashville, St. Louis
9. New York Boston, New York, Richmond
10. Pittsburgh Cincinnati, Detroit, Pittsburgh, Richmond
11. Richmond Charlotte, New York, Pittsburgh, Richmond
12. St. Louis Indianapolis, Nashville, St. Louis

Set Covering Example (2 of 4) Set Covering Example in Excel (3 of 4)
xi = city i, i = 1 to 12; xi = 0 if city is not selected as a hub and xi = 1 if it is. Objective function
Minimize Z = x1 + x2 + x3 + x4 + x5 + x6 + x7 + x8 + x9 + x10 + x11 + x12
subject to: Atlanta: x1 + x3 + x8  1
Boston: x2 + x10  1
Charlotte: x1 + x3 + x11  1
Cincinnati: x4 + x5 + x6 + x8 + x10  1
Detroit: x4 + x5 + x6 + x7 + x10  1
Indianapolis: x4 + x5 + x6 + x7 + x8 + x12  1
Milwaukee: x5 + x6 + x7  1
Nashville: x1 + x4 + x6+ x8 + x12  1
New York: x2 + x9+ x11  1
Pittsburgh: x4 + x5 + x10 + x11  1
Richmond: x3 + x9 + x10 + x11  1 Decision variables =SUMPRODUCT(B18:M18,B20:M20)
St Louis: x6 + x8 + x12  1 xij = 0 or 1 in row 20
Copyright © 2016 Pearson Education, Inc. 5-41 Copyright © 2016 Pearson Education, Inc. Exhibit 5.21 5-42
7
0 – 1 Integer Programming Modeling Examples Total Integer Programming Modeling Example
Set Covering Example (4 of 4) Problem Statement (1 of 3)
■ Textbook company developing two new regions.
Exhibit 5.22 ■ Planning to transfer some of its 10 salespeople into new regions.
■ Average annual expenses for sales person:
▪ Region 1 - $10,000/salesperson
City constraints
set > 1 ■ Total annual expense budget is $72,000.
■ Sales generated each year:
■ How many salespeople should be transferred into each region in order to
maximize increased sales?
Total Integer Programming Modeling Example Total Integer Programming Modeling Example
Model Formulation (2 of 3) Solution with QM for Windows (3 of 3)
Step 1:
Formulate the Integer Programming Model
Maximize Z = $85,000x1 + 60,000x2
subject to:
x1 + x2  10 salespeople
$10,000x1 + 7,000x2  $72,000 expense budget
x1, x2  0 or integer
Step 2:
Solve the Model using QM for Windows
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recording, or otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
Copyright © 2016 Pearson Education, Inc. 5-47

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Chapter Topics

 Integer Programming Graphical Solution

Chapter 5  0-1 Integer Programming Modeling Examples

Integer Programming Models A Total Integer Model (1 of 2)

A Total Integer Model (2 of 2) A 0 - 1 Integer Model (1 of 2)

■ Resource constraints: $120,000 budget; 12 acres of land.

subject to: ■ Data:

A Mixed Integer Model (2 of 2) Integer Programming Graphical Solution

Integer Programming Model:

Integer Programming Example Branch and Bound Method

Optimal Solution: ■ Excel and QM for Windows used in this book.

Figure 5.1 Feasible solution space with integer solution points

Recreational Facilities Example:

Maximize Z = 300x1 + 90x2 + 400x3 + 150x4

x1, x2, x3, x4 = 0 or 1

Computer Solution of IP Problems Computer Solution of IP Problems

Restricts variables, C12:C15,

Click on “bin” for 0-1.

Exhibit 5.3 Exhibit 5.4

Computer Solution of IP Problems Computer Solution of IP Problems

Recreational Facilities Example:

Return to solver Exhibit 5.5

Variable type Click on “0/1” to make variables 0 or 1.

Computer Solution of IP Problems Computer Solution of IP Problems

Integer Programming Model of Machine Shop:

Maximize Z = $100x1 + $150x2

Computer Solution of IP Problems Computer Solution of IP Problems

Exhibit 5.11 Exhibit 5.12

Computer Solution of IP Problems Computer Solution of IP Problems

Integer Programming Model for Investments Problem:

Computer Solution of IP Problems Computer Solution of IP Problems

Integer requirement for Constraints for acres,

NPV Return Project Costs per Year ($1000)

1. Web site $120 $55 $40 $25

Available funds per year 150 110 60

0 – 1 Integer Programming Modeling Examples 0 – 1 Integer Programming Modeling Examples

Maximize Z = $120x1 + $85x2 + $105x3 + $140x4 + $70x5

0 – 1 Integer Programming Modeling Examples 0 – 1 Integer Programming Modeling Examples

0 – 1 Integer Programming Modeling Examples 0 – 1 Integer Programming Modeling Examples

0 – 1 Integer Programming Modeling Examples 0 – 1 Integer Programming Modeling Examples

Copyright © 2016 Pearson Education, Inc. 5-47

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