Integer Programming: Binary

Decision Variables

73-220-F05

Lecture 15 – Solution

1
Set Covering Example
There are 6 cities in Kilroy County. The county must
determine where to build central fire stations. The
county wants to build the minimum number of central
fire stations needed to ensure that at least one fire
station is within 15 minutes (driving time) of each city.
The times (in minutes) required to drive between the
cities in Kilroy county are given in the table. Formulate
an IPP that will tell Kilroy how many fire stations
should be built and where they should be located.

2
 Set Covering Example contd.
To
From City 1 City 2 City 3 City 4 City 5 City 6
City 1 0 10 20 30 30 20
City 2 10 0 25 35 20 10
City 3 20 25 0 15 30 20
City 4 30 35 15 0 15 25
City 5 30 20 30 15 0 14
City 6 20 10 20 25 14 0

3
Formulation
The first step is to determine the cities which are
within 15 minutes of each of the cities.

City 1: 1,2
City 2: 1,2,6
City 3: 3,4
City 4: 3,4,5
City 5: 4,5,6
City 6: 2,5,6

4
 Formulation
Decision Variables
X(i) = 1 if a fire station is built in city i, i=1,2,3,4,5,6
= 0 otherwise

Objective Function
Minimize z = x(1) + x(2) + x(3) + x(4) + x(5) + x(6)

Constraints
City 1: x(1) + x(2) > 1
City 2: x(1) + x(2) + x(6) > 1
City 3: x(3) + x(4) > 1
City 4: x(3) + x(4) + x(5) > 1
City 5: x(4) + x(5) + x(6) > 1
City 6: x(2) + x(5) + x(6) > 1

x(i) - binary

5
 Capacitated Lot Sizing
Determine a production schedule given the
following information
Four-week demand: 20, 30, 40, 10
Setup cost: $200
Setup time: 6 hours
Processing time: 1 hour/unit
Holding cost: $15/unit/week
Production capacity: 40 hours/week
If you produce in week 4, you have to produce at
least for 20 hours and not more than 30 hours.

6
 Formulation
Decision Variables:
xi = quantity produced in week i, (i=1,2,3,4)
yi = 1 if there is production in week i, (i=1,2,3,4)
Ii = inventory remaining at the end of week i
Objective Function:
Min 200 (y1 + y2 + y3 + y) + 15(I0 + I1)/2 + 15(I2 + I3 + I4)
Note: I0 is the starting inventory for the whole planning period.
Constraints:
Production and inventory equations: Week 4
x1 – I1 = 20 x4 > 20 y4
I1 + x2 –I2 = 30 x4 < 30 y4
I2 + x3 – I3 = 40
I3 +x4 – I4 = 10
Production capacity
xi ≤ 34 yi i=1,2,3,4

7
Fixed Charge Problems
Transportation from m warehouses to n
customers. There is a unit transportation cost
Cij between each warehouse i and customer j,
and a fixed charge Fi if warehouse i is leased.
Each warehouse has a fixed capacity, Ui.
The problem is to decide which set of
warehouses to lease to meet all customer
demands, Dj.

8
 Formulation
● Decision variables
– yi = 1 if warehouse i is leased; 0 otherwise
– xij -- # units to ship from warehouse i to customer j.
● Objective function
– Min cost = ∑iFiyi + ∑ i∑j Cijxij
● Constraints
– Supply at warehouse i: ∑j xij < Uiyi
– Demand at customer j: ∑i xij = Dj
– Nonnegativity for xij, binary for yi.