Answer 1

Variables:
Let variables be the following:

To Cincinnati Kansas City San Francisco Factory

Operation
H90 H90 H90
From G50 G50 G50 al
Philadelph p1
ia x1 y1 x5 y5 x9 y9
St. Louis x2 y2 x6 y6 x10 y10 p2
New p3
Orleans x3 y3 x7 y7 x11 y11
Denver x4 y4 x8 y8 x12 y12 p4

Where,
xi , where i = 1 to 12, and stands for units of G50 received.
yj , where j = 1 to 12, and stands for units of H90 received.
For example:
x1 is G50 units available to Cincinnati transported from Philadelphia.
Y10 is H90 units available to San Francisco transported from St.
Louis.
p1, p2, p3 , p4 be boolean variables having value {0,1} signifying
operational state of the factory :
1 : Factory is shutdown
2 : Factory is operational

Objective function:
Minimize f(xi=1 12 , yj=112 , pk=1 4)
Where,
f(xi=1 12 , yj=112 , pk=1 4) = 12*x1 + 13*x2 + 10*x3 + 16*x4 + 16*y1 +
13*y2 + 12*y3 + 18*y4 + 13*x5 + 13*x6 + 10*x7 + 14*x8 + 17*y5 + 13*y6 +
12*y7 + 16*y8 + 15*x9 + 16*x10 + 11*x11 + 14*x12 + 19*y9 + 16*y10 + 13*y11
+ 16*y12 + p1 * 40000 + p2 * 35000 + p3 * 20000 + p4 * 30000
s.t.
Non-negative constraints:
x1,x2.,x12 >= 0
y1,y2.,y12 >= 0
Integral and binary constraints:
x1,x2..x12 and y1,y2..y12 are integers.
 p1,p2.p4 is binary.
Production constraints:
( Total time taken by units produced should be less than available time
when factory is open)
Philadelphia : 640*p1 (0.06 * (x1 + x5 + x9) + 0.06 * (y5 + y1 + y9))
>= 0
St. Louis : 960*p2 (0.07 * (x2 + x6 + x10) + 0.08 * (y2 + y6 + y9))
>= 0
New Orleans: 480*p3 (0.09 * (x3 + x7 + x11) + 0.07 * (y3 + y7 + y11))
>= 0
Denver : 640*p4 (0.05 * (x4 + x8 + x12) + 0.09 * (y4 + y8 + y12))
>= 0
Demand Constraints:
Cincinnati : x1 + x2 + x3 + x4 = 2000
y1 + y2 + y3 + y4 = 5000
Kansas : x5 + x6 + x7 + x8 = 3000
y5 + y6 + y7 + y8 = 6000
San Francisco : x9 + x10 + x11 + x12 = 5000
Y9 + y10 + y11 + y12 = 7000

Explanation for coefficients of objective function:

For x1, cost of production per unit + transportation cost per unit = 10 + 2 = 12.
Similarly other coefficients are calculated for xi and yj.

Explanation of Objective function:

Objective is to minimize costs total cost which is the sum of:

Fixed cost when the plant is operational.

Variable cost for each unit for production and transportation.
Solution:

Philadelphia plant is to be shutdown.

Note: In the excel with integer constraints the model was going in a an endless loop as each value
of xi and yi changed the value of time available thus modifying boundary condition. Optimization by
taking fixed time constraint led to less than optimal solution as the boundary was already moved
by approximation. The above model ignores integer constraint for production.
Answer 2 a
Let Aij be the element of a matrix A, which contains the preferences of the
customer.
Indices:
i: Customers; i {1, 2, ..., 12)
j: Magazine; j {1, 2, ..., 7)
Parameters:
Aij : Customer preference of magazine. And Aij {0, 1) where:
0: Not preferred
1: Preferred
Variables:
Yj : Magazine j to be published for distribution.
Xi : Denotes if any magazine is received by customer i.

Objective function:
12

Maximize function, f(Xi=1..12) = Xi

i=1

Constraints:
Integer and binary constraints:
Yj {0, 1} , it is binary.
Xi {0, 1}, it is binary.
Distribution constraints:
X1 <= Y1 + Y3 + Y6
X2 <= Y3 + Y5 + Y6 + Y7
X3 <= Y1
X4 <= Y1 + Y4 + Y5
X5 <= Y4 + Y5
X6 <= Y2 + Y7
X7 <= Y3 + Y6
X8 <= Y4
X9 <= Y1 + Y3 + Y4 + Y7
X10 <= Y2 + Y5
 X11 <= Y3
X12 <= Y2
Magazine production constraint:
7

Y j=3
j=1

Solution:
Answer 2 b
Let Aij be the element of a matrix A, which contains the preferences of the
customer.
Indices:
i: Customers; i {1, 2, ..., 12)
j: Magazine; j {1, 2, ..., 7)
Parameters:
Aij : Customer preference of magazine. And Aij {0, 1) where:
0: Not preferred
1: Preferred
Variables:
Yj : Magazine j to be published for distribution.

Objective function:
7

Minimize function, f(Yj=1..7) = Y j

j=1

Constraints:
Integer and binary constraints:
Yj {0, 1} , it is binary.
Distribution constraints:
Y1 + Y3 + Y6 >= 1
Y3 + Y5 + Y6 + Y7 >= 1
Y1 >= 1
Y1 + Y4 + Y5 >= 1
Y4 + Y5 >= 1
Y2 + Y7 >= 1
Y3 + Y6 >= 1
Y4 >= 1
Y1 + Y3 + Y4 + Y7 >= 1
Y2 + Y5 >= 1
Y3 >= 1
Y2 >= 1
Solution: