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Quantitative Analysis For Management III: Course Instructor: Sonia

The document outlines topics that will be covered in a quantitative analysis for management course, including integer programming, decision analysis, queueing theory, and simulation. Integer programming models discussed include the bin packing problem and traveling salesman problem. Decision analysis covers making decisions with and without probabilities. Queueing theory examines basic queueing models and single/multi-server queueing systems.

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Harshit Sharma
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142 views24 pages

Quantitative Analysis For Management III: Course Instructor: Sonia

The document outlines topics that will be covered in a quantitative analysis for management course, including integer programming, decision analysis, queueing theory, and simulation. Integer programming models discussed include the bin packing problem and traveling salesman problem. Decision analysis covers making decisions with and without probabilities. Queueing theory examines basic queueing models and single/multi-server queueing systems.

Uploaded by

Harshit Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Quantitative Analysis for 

Management ‐ III

Course Instructor: Sonia
QAM III
• Integer Programming
– Model formulation
– Graphical method
– Branch and bound algorithm
– Bin packing problem
– Traveling salesman problem
• Decision Analysis
– Decision making without probabilities
– Decision making with probabilities
– Decision making with experimentation
– Decision tree
• Queueing Theory
– Basic queueing models
– Single server queueing systems
– Multi server queueing systems
• Simulation
Integer Programming

Optimization Problem

Continuous  Discrete Optimization 
Optimization Problem Problem

Integer Programming Problem
Integer Program
• Linear programming with integrality restrictions
• Integrality restrictions that some variables can only 
have values 
– 0 or 1
– Integer values
– Values in some specified discrete set
Example: 0‐1 variables
• In automobile design, one need to decide whether to 
use cast iron or aluminium engine block.

• Introduce a binary variable
– y = 0, if cast iron block used
– y = 1, if aluminum block used
• Restrict y to 0−1 values only
• Other values for y have no meaning
• Such 0−1 variables called combinatorial choice 
variables.
Example: Integer Variables

• Army decides to use combat simulators to train 
soldiers. Each costs $ 5 million US. 

• Let y = no. of combat simulators purchased by Army.
• Then y ≥ 0 is an integer variable.
Example: Discrete Variables
• In designing water distribution system for a city, 
diameter of pipe to be used for a particular link 
needs to be decided. Pipe available only in diameters 
16", 20", 24", 30". 

• If y = diameter of pipe used on this link
• y can only take a value from set {16; 20; 24; 30}. 
• A discrete valued variable.
Types of Integer Program
– Pure Integer Linear Program (PIP)
• If all variables are required to take integer values only, model is 
called a Pure IP Model. 
• In addition, if they are all required to be 0 or 1, model called a 0−1 
Pure IP Model.
– Mixed Integer Linear Program (MIP)
• If some variables are required to be integer, and others can be 
continuous, model is called a Mixed IP Model. 
• If all integer decision variables are binary, model called 0−1 MIP.
– Integer Feasibility Problem 
• It refers to one with no obj. function to optimize, but aim is to find 
an integer solution to a given system of linear constraints. 
• In such model, if all variables binary, it is called 0−1 Feasibility 
Problem.
Formulation of Integer Programs
• Can be tricky due to integer/binary variables:
– they represent yes/no rather than quantity.
– Logical implications.
• Identify/define variables carefully.
• Write constraints so that they are linear constraints
• Requires practice to formulate integer programs 
correctly and efficiently.
A Job Training Problem
• A machine tool company conducts a job‐training program for 
machinists. 
– Trained machinists are used as teachers in the program at a ratio of one for 
every ten trainees. 
– The training program lasts for one month. 
– From past experience it has been found that out of ten trainees hired, only 
seven complete the program successfully (the unsuccessful trainees are 
released). 
– Trained machinists are also needed for machining and the company’s 
requirements for the next 3 months are as follows:
• January 100
• February 150
• March 200
– In addition, the company requires 250 trained machinists by April. There are 
130 trained machinists available at the beginning of the year. Payroll costs per 
month are: 
• Each trainee $400
• Each trained machinist $700 (Machining or teaching)
• Each trained machinist idle $500
• Set up the linear programming problem that will produce the 
minimum cost hiring and training schedule and meet the company’s 
requirements.
A Job‐Training Problem 

Trained Machinist:
– Work a machine
– Teach
– Stay idle

Decision Variables:
x1: trained machinist teaching in January
x2: trained machinist idle in January
x3: trained machinist teaching in February
x4: trained machinist idle in February
x5: trained machinist teaching in March
x6: trained machinist idle in March

Machining + Teaching + Idle = Trained machinists available
Constraints:

100 + x1 + x2 = 130 (Jan)


150 + x3 + x4 = 130 + 7x1 (Feb)
200 + x5 + x6 = 130 + 7x1 + 7x3 (Mar)
130 + 7x1 + 7x3 + 7x5 ≥ 250 (Apr)
Objective:

Minimize
400(10x1 + 10x3 + 10x5) + 700 (x1 + x3 + x5) +500(x2 + x4 + x6)
+ 700(100 +150 +200)
Non-Negativity:

x1, x2, x3, x4, x5, x6 ≥ 0 and integers


Project Assignment Problem

Decision Variables:

Objective Function:
Constraints:
Each person must be assigned to exactly one project

Each project must have at least one person assigned to it

At least two persons must be assigned to project 2

Not more than two persons can be assigned to project 3

Persons 4 and 5 should be assigned to same project


S1
Knapsack Problem

Decision Variables:

Objective Function:

Constraints:
Slide 15

S1 The knapsack context refers to a hiker selecting the most valuable items to carry, subject to a
weight or capacity limit.
Sonia, 10-02-2008
Bin Packing Problem

Decision Variables:

Objective Function:

Constraints:
Traveling Salesman Problem

Decision Variables:

Objective Function:
Constraints:

(Where S’ is the compliment of S
and N is the set of all cities)
Procurement Problem
Decision Variables:

Objective Function:

Constraints:
Plant Location Problem

Decision Variables:

Objective Function:
Constraints:
Sudoku Puzzle
Sudoku Formulation
Decision Variables:

Constraints:

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