CHAPTER 6

Integer, Goal, and

Nonlinear Programming
Models

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Managerial Decision Modeling with Spreadsheets, 3/e
© 2013 Pearson Education, Inc. publishing as Prentice Hall 6-1
 LEARNING OBJECTIVES
1. Formulate integer programming (IP) models.
2. Set up and solve IP models using Excel’s Solver.
3. Understand the difference between general
integer and binary integer variables.
4. Understand the use of binary integer variables in
formulating problems involving fixed costs.
5. Formulate goal programming (GP) problems and
solve them using Excel’s Solver.

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 Introduction

• 3 basic characteristics of LP
• DVs are allowed to have fractional values
• Unique objective function (OF)
• All mathematical expressions
(OF & constraints) had to be linear

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 Integer programming
• Extension to LP that solves problems
requiring integer solutions
• Two types of integer variables
• general integer variables
• binary variables.
• General integer variables can take any
non-negative, integer value that satisfies all
constraints in model.
• Binary variables can only take either of two
values: 0 or 1.
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 Integer programming
Pure integer programming problems
All decision variables must have integer
solutions (general integer, binary, or a
combination of the two).

Mixed integer programming problems

Some, but not all, decision variables must
have integer solutions
Non-integer variables can have fractional
optimal values

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 Goal programming
• Extension of LP that permits more than
one objective to be stated
• to maximize profit
• to maximize market share
• to maintain full employment
• to minimize costs
• Many of these goals can conflict and
can be difficult to quantify.
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 Nonlinear programming
• Extension to LP in which OF or/and
constraints are nonlinear.
• Price of various products may be a
function of number of units produced.
• As more are made, the selling price per
unit decreases.
max profit = 25X - 0.4X2 + 30Y - 0.5Y2

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 Integer Programming

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 Solving integer programming

• An IP model has objective function and

constraints identical to LP models.
• No real difference in basic procedure for
formulating an IP model and LP model.
• Only additional requirement in IP model is
one or more of decision variables have to
take on integer values in optimal solution.

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 Solving integer programming
• The LP that results from dropping the integer
requirements is called the LP Relaxation of
the IP.
• One-way is solving the LP relaxation problem
and rounding-off the optimal solution, but
• The rounded-off may not be optimal
• The rounded-off may not even be in the
feasible region.
• Unlike LP, optimal solution may not be a
corner point, but any point inside the feasible
region in an IP.
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 An IP example

Write the IP formulation for the problem.

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 Harrison Electric
L = number of lamps to make
F = number of ceiling to make

Objective function
Maximize profit = $600L + $700F
subject to

2L + 3F ≤ 12 (wiring hours)
6L + 5F ≤ 30 (assembly hours)
L, F ≥ 0 and integer without this
restriction,
based on it is LP
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 LP relaxation
Solving the problem as an LP ignoring the
integer constraints, the optimal solution to
the linear program gives fractional values for
both L and F. The optimal solution to the
linear program is:
L = 3.75 F = 1.5 OFV = 3,300

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 Graphical Solution
F Figure 6.1
6–

+ = Integer Valued Point

5–
6L + 5F ≤ 30

4–
Rounded-off IP Solution
(L = 4, F = 2, Infeasible)
3– +

2– + + + + Optimal LP Solution
(L = 3.75, F = 1.50, Profit = $3,300)
1– + + + + 2L + 3F ≤ 12
Nearest Feasible Rounded-off IP Solution
(L = 4, F = 1, Profit = $3,100)
– | | | | | |
0 1 2 3 4 5 6 L
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feasible IP solution but is it optimal?
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 Integer Solutions
LAMPS (L) CEILING FANS (F) PROFIT ($600L + $700F)
0 0 $ 0
1 0 $ 600
2 0 $1,200
3 0 $1,800
4 0 $2,400
5 0 $3,000
0 1 $ 700
1 1 $1,300
2 1 $1,900
3 1 $2,500
4 1 $3,100  Nearest feasible rounded-off solution
0 2 $1,400
1 2 $2,000
2 2 $2,600
3 2 $3,200  Optimal IP solution
0 3 $2,100
1 3 $2,700
0 4 $2,800 Table 6.1
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 Graphical Solution
F Figure 6.1
6–

+ = Integer Valued Point

5–
6L + 5F ≤ 30

4–
Rounded-off IP Solution
(L = 4, F = 2, Infeasible)
3– + Optimal IP solution
L=3, F=2, Profit=$3,200
2– + + + + Optimal LP Solution
(L = 3.75, F = 1.50, Profit = $3,300)
1– + + + + 2L + 3F ≤ 12
Nearest Feasible Rounded-off IP Solution
(L = 4, F = 1, Profit = $3,100)
– | | | | | |
0 1 2 3 4 5 6 L
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 Solving integer programming

• An important concept
• Optimal IP solution is always a feasible
solution of the same LP problem (i.e., LP-
Relaxation), but not vice versa.
• Optimal IP solution can never be better than
the solution of the same LP problem

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 Solving integer programming

• Solution techniques
• Complete enumeration of all feasible points.
• Techniques like Branch & Bound
• Excel-Solver (uses Branch & Bound)

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 Solving the Problem

Screenshot 6-1
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 Solving the Problem

Screenshot 6-1
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 Solver Options

From the options

menu, unclick
ignore integer
constraints

Screenshot 6-2A

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 Solver Options

Screenshot 6-2B

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 Binary Variables
• Only two possible values: 0 or 1
• Xi = 1 if stock i purchased
0 if stock i is not purchased
• We used binary variables in network flow
models (assignment and shortest path)
without specifying as an IP problem.
• The unimodularity property of network models
automatically ensured that optimal values are 0
or 1.

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 Sussex County
Sussex County needs to build health care clinics to serve seven communities
(named A to G) in the region. Each clinic can serve communities within a
maximum radius of 30 minutes’ driving time, and a community may be served
more than one clinic. Table 6.3 shows the times it takes to travel between the
seven communities. What is the minimum number of clinics that would be
needed, and which communities should they be located?

TO
FROM A B C D E F G
A 0 15 20 35 35 45 40
B 15 0 35 20 35 40 40
C 20 35 0 15 50 45 30
D 35 20 15 0 35 20 20
E 35 35 50 35 0 15 40
F 45 40 45 20 15 0 35
G 40 40 30 20 40 35 0
Table 6.3

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 Sussex County

COMMUNITY COMMUNITIES WITHIN 30 MINUTES

A A, B, C
B A, B, D
C A, C, D, G
D B, C, D, F, G
E E, F
F D, E, F
G C, D, G

Table 6.4

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 Sussex County
• Decision Variables
A = 1 if a clinic is located in community A
= 0 if a clinic is not located in community A

Similarly
B (community B),
C (community C),
D (community D),
E (community E),
F (community F),
G (community G)
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 Sussex County
Objective function
Minimize total
number of clinics = A + B + C + D + E + F + G
subject to
A+B+C ≥1 (community A is covered)
A+B+D ≥1 (community B is covered)
A+C+D+G ≥1 (community C is covered)
B+C+D+F+G ≥1 (community D is covered)
E+F ≥1 (community E is covered)
D+E+F ≥1 (community F is covered)
C+D+G ≥1 (community G is covered)
All variables are binary.
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 Solving the Problem

Screenshot 6-4

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