Chapter: Integer Programming

Course: Operations Research

Lecture 6

Week: 6th week (14th March 2024)

Dr. Waqas Ahmed

Department of Operations and Supply Chain
NUST Business School (NBS)
National University of Sciences & Technology, Islamabad, Pakistan
Chapter Topics
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nteger Programming (IP) Models

-1 Integer Programming Modeling Examples

ixed Integer Model Programming Modeling

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nteger Programming Graphical Solution 2
 Integer Programming Models »Dr. Waqas Ahmed

Types of Models

Total Integer Model: All decision variables required to have integer

solution values.

0-1 Integer Model: All decision variables required to have integer values
of zero or one.

Mixed Integer Model: Some of the decision variables (but not all) required
to have integer values.

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A Total Integer Model (1 of 2)
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■ Machine shop obtaining new presses and lathes.

■ Marginal profitability: each press $100/day; each lathe
$150/day.
■ Resource constraints: $40,000 budget, 200 sq. ft. floor
space.
■ Machine purchase prices and space requirements:
Required
Machine Floor Space (ft.2) Purchase Price

Press 15 $8,000

Lathe 30 4,000

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A Total Integer Model (2 of 2) »Dr. Waqas Ahmed

Integer Programming Model:

Maximize Z = $100x1 + $150x2

subject to:
$8,000x1 + 4,000x2  $40,000
15x1 + 30x2  200 ft2
x1, x2  0 and integer
x1 = number of presses
x2 = number of lathes

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Computer Solution of IP Problems »Dr. Waqas Ahmed

Total Integer Model with Excel (3 of 6)

Objective
function

Slack,
=G6-E6
Decision
variables— =C6*B10+D
B10:B11 6*B11

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Computer Solution of IP Problems »Dr. Waqas Ahmed

Total Integer Model with Excel (4 of 6)

Integer
variables

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Computer Solution of IP Problems »Dr. Waqas Ahmed

Total Integer Model with Excel (5 of 6)

Click on
“int”

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Computer Solution of IP Problems »Dr. Waqas Ahmed

Total Integer Model with Excel (6 of 6)

Integer
Solution

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A 0 - 1 Integer Model (1 of 2) »Dr. Waqas Ahmed

■ Recreation facilities selection to maximize daily usage by residents.

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

■ Selection constraint: either swimming pool or tennis center (not
both).

Expected Usage Land Requirement

Recreation
(people/ day) Cost ($) (acres)
Facility
Swimming pool 300 35,000 4
Tennis Center 90 10,000 2
Athletic field 400 25,000 7
Gymnasium 150 90,000 3

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A 0 - 1 Integer Model (2 of 2) »Dr. Waqas Ahmed

Integer Programming Model:

Maximize Z = 300x1 + 90x2 + 400x3 + 150x4
subject to:
$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
x1 = construction of a swimming pool
x2 = construction of a tennis center
x3 = construction of an athletic field
x4 = construction of a gymnasium © Dr. Waqas Ahmed 13
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Mutually Exclusive Constraint

Multiple Choice Constraint

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f the community council had specified that exactly two of

the four facilities must be built, this constraint would be
formulated as

f, alternatively, the council had specified that no more

than two facilities must be constructed, the constraint
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n a conditional constraint, the construction of one

facility is conditional upon the construction of another.

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variation of this type of conditional constraint is the corequisite constraint, wherein

if one facility is constructed, the other one will also be constructed and vice versa.
For example, suppose the council worked out a political deal among themselves,
wherein if the pool is accepted, the tennis center must also be selected and vice
versa. This constraint is written as

his constraint makes and equal the same value, either zero or one.
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Computer Solution of IP Problems »Dr. Waqas Ahmed

0 – 1 Model with QM for Windows (2 of 3)

Click to
solve.

Variabl Click on “0/1” to make

e type variables 0 or 1.

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Computer Solution of IP Problems »Dr. Waqas Ahmed

Total Integer Model with Excel (3 of 3)

Solution:
X1=1 swimming pool
X2=0 tennis center
X3=1 athletic field
X4=0 gymnasium
Z=700 people per day usage
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A Mixed Integer Model (1 of 2) »Dr. Waqas Ahmed

■ $250,000 available for investments providing greatest

return after one year.
■ Data:
 Condominium cost $50,000/unit; $9,000 profit if sold
after one year.
 Land cost $12,000/ acre; $1,500 profit if sold after one
year.
 Municipal bond cost $8,000/bond; $1,000 profit if sold
after one year.
 Only 4 condominiums, 15 acres of land, and 20
municipal bonds available.

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A Mixed Integer Model (2 of 2) »Dr. Waqas Ahmed

Integer Programming Model:

Maximize Z = $9,000x1 + 1,500x2 + 1,000x3
subject to:
50,000x1 + 12,000x2 + 8,000x3  $250,000
x1  4 condominiums
x2  15 acres
x3  20 bonds
x2  0
x1, x3  0 and integer
x1 = condominiums purchased
x2 = acres of land purchased
x3 = bonds purchased © Dr. Waqas Ahmed 22
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0 – 1 Integer Programming Modeling Examples »Dr. Waqas Ahmed

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

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0 – 1 Integer Programming Modeling Examples »Dr. Waqas Ahmed

Capital Budgeting Example (2 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
x3 + x4  1 © Dr. Waqas Ahmed 25
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Thank you! Any Questions

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