Scribd
Upload
61 views33 pages

Dr. Joon-Yeoul Oh: IEEN 5335 Principles of Optimization

This document provides an overview of a lecture on principles of optimization. It includes: 1. Links to online resources about optimization and operations research. 2. An example linear programming problem about determining the optimal number of chairs and tables to produce given limits on resources. 3. Key concepts in linear programming like decision variables, objectives functions, and constraints are defined and applied to the chair and table example.

Uploaded by

Soumojit Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
61 views33 pages

Dr. Joon-Yeoul Oh: IEEN 5335 Principles of Optimization

This document provides an overview of a lecture on principles of optimization. It includes: 1. Links to online resources about optimization and operations research. 2. An example linear programming problem about determining the optimal number of chairs and tables to produce given limits on resources. 3. Key concepts in linear programming like decision variables, objectives functions, and constraints are defined and applied to the chair and table example.

Uploaded by

Soumojit Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 33

IEEN 5335

Principles of Optimization

Lecture 1

Dr. Joon-Yeoul Oh

Dept. of Mechanical & Industrial Engineering


Texas A&M University – Kingsville
Some Internet resources
 Textbook web site: this is for 9th edition, which provides
more free stuff.
http://highered.mheducation.com/sites/0073376299/student
_view0/informs_articles.html
 Optimization, Frequently Asked Questions (FAQ)
http://www.mcs.anl.gov/otc/guide/faq/linear-
programming-faq.html
 Mathematical Programming Glossary
http://glossary.computing.society.informs.org/
 Institute for Operations Research and Management Science
http://www.informs.org/

2
LINDO

 http://www.lindo.com/index.php?option=com_content&vie
w=article&id=34&Itemid=15

 For downloading, click Download Classic LINDO

 Please download LINDO in your computer. No


worry…it’s free!

3
Why learn OR?

 Humans are natural optimizers


 You can be a hero: save your company time, money,
resources.
 Many companies use it to solve operating problems.
 Software is widely available (Excel, etc)
 It’s easy to do “what if” analyses.

4
OR background

 Operations Research (OR) started just before World War II


in Britain with the establishment of teams of scientists to
study the strategic and tactical problems involved in
military operations. – computer limitation
 The objective was to find the most effective utilization of
limited military resources by the use of quantitative
techniques.
 Following the war, numerous peacetime applications (post
war economy) emerged, leading to the use of OR and
management science in many industries and occupations. –
better computers

5
What is Operations Research?

 Operations Research (OR) is the study of mathematical


models for complex organizational systems.
 OR uses mathematical relationships and numerical data
 Optimization is a branch of OR which uses mathematical
techniques such as linear and nonlinear programming to
derive values for system variables that will optimize
performance.

6
7
See textbook table 1.1
OR terms
 Model
 Mathematical representation of a real world
 Abstraction of reality
 Small-scale representation of a large object
 System: A functionally related group of elements, especially:
 The human body: the nervous system; the skeletal system, etc
 A group of interacting mechanical or electrical components.
 A network of structures and channels, as for communication,
travel, or distribution.
 A network of related computer software, hardware, and data
transmission devices.
 Etc.
8
Phases of an OR study

 The principal phases for implementing OR in practice


include:

1. Defining the problem and gathering data


2. Formulating a mathematical model
3. Deriving solution(s) from the model
4. Validation of the model
5. Implementation of the solution

 This process is iterative, with feed-back between the steps

9
Phases of OR – validating the model

 How do you know it (the OR model) reflect reality?

 Validation efforts
 Recreating the past
 Expert opinion
 Start slowly and consider the end-user early

10
Where to put your effort?

 Different answers for students and practitioners; different


answers for different types of practitioners
 40% / 20% / 40% for defining the problem and
finding the data/crunching numbers/analysis,
packaging and presentation of results
 In the model building stage:
 15% to build the model; 85% to find, manage and
“clean-up” the data

11
OR basic concepts

 How to best use resources.


 Constraints,
 Cost or Value
 Model brings it together.
 Objective Function
 Constraint Equations

12
OR constraints

 Limitations on resources, e.g.


 We have 12 telephone lines.
 We must finish in two weeks.
 We can get 200 tons of steel.
 800 volunteer-hours of labor.

13
OR costs

 Unit Cost of resource, e.g.


 Telephone lines costs $10/hr.
 Saving a day costs $2000.
 Each axle takes 85 lb steel.
 Winterizing: 75 hrs labor.

14
OR values

 Benefit of a solution, e.g.


 Revenue avg: $30 / call.
 Being late costs $5000/day.
 Each axle is worth $145.
 Winterizing saves $400/yr.

15
OR model
 A mathematical model consists of:
 Decision Variables, Constraints, Objective Function,
Parameters and Data
 Linear program (LP)
 Integer program (IP)
 Network programming
 Nonlinear programming
 Etc.

16
OR Taxonomy

17
OR Taxonomy (cont.)

18
OR Taxonomy (cont.)

19
Mathematical Programming - terms

 A solution is an assignment of values to variables.


 A feasible solution is an assignment of values to variables
such that all the constraints are satisfied.
 The objective function value of a solution is obtained by
evaluating the objective function at the given solution.
 An optimal solution (for minimization) is one whose
objective function value is less than or equal to that of all
other feasible solutions.
 For maximization, the optimal solution is one whose the
object value is greater than or equal to that of all other
feasible solutions.
20
OR – simple Transportation example
Distribution centers Stores

21
OR – simple Transportation model

22
OR – Queueing model

23
OR – general LP form

24
Characteristics of LPs

 Decision variables (DVs) are not negative (non-


negativity)
 Criterion for choosing the best values for the DVs is a
linear function (first powers and no cross-products)
 Resource restrictions are a set of linear equations or
inequalities.

25
Formulating Linear Programs

 Translating a problem into a linear program is part art and


part science.
 “Typical” examples:
 Product mix
 Advertising media selection
 Workforce scheduling
 Job Training
 Gasoline blending

We will solve these examples later.

26
LP - example
 Q: How many chairs and/or tables to make?
 Each require pine, oak & time
 Limits on pine, oak and time.
 Profit: $6/chair, $12/table.
 Data
Item Chair Table Limit
Profit $6 $12 ---
Pine 3 bf 12 bf 120 bf
Oak 8 bf 4 bf 160 bf
Time 6 hr 10 hr 150 hr
27
Chair and Table example

 Decision Variables (x)


 Use to make the decision
 Objective function is z(x)
 Constraints are gi(x)
 Here, x = (C,T)
 C = # chairs, T = # tables.

28
Chair and Table example - model

 Objective Function  LINDO format


Max: z = 6 C + 12 T
 Constraints Max 6 C + 12 T
s.t.
Pine: g1 = 3 C + 12 T ≤ 120
3 C + 12 T <= 120
Oak: g2 = 8 C + 4 T ≤ 160
8 C + 4 T <= 160
Time: g3 = 6 C + 10 T ≤ 150 6 C + 10 T <= 150
Non-neg: C ≥ 0, T ≥ 0 end

29
Chair and Table example – trial solution

 Let C = 10, T = 5
 z = 6 × 10 + 12 × 5 = 120
 Constraints
 Pine: 3 × 10 + 12 × 5 = 90 < 120
 Oak: 8 × 10 + 4 × 5 = 100 < 160
 Time: 6 × 10 + 10 × 5 = 110 < 150
 And, Non-neg: C > 0, T > 0

30
C & T example – trial solution (cont.)

 What we know:
 (C, T) = (10, 5) is feasible
 z(10, 5) = $120
 What we do not know
 Whether z(C, T) > $120 for some feasible (C, T)
 We also know …
 30 bf of pine left
 60 bf of oak left
 40 hr of time left
 We could make more!
31
C & T example – trial 2

 Make Only Tables !!!


 Pine: 120/12 = 10 T ≤ 10
 Oak: 160/4 = 40 T ≤ 10
 Time: 150/10 = 15 T ≤ 10
 Profit: 10 × $12 Z = $120

32
C & T example – trial 3

 Make Only Chairs !!!


 Pine: 120/3 = 40 C ≤ 40
 Oak: 160/8 = 20 C ≤ 20
 Time: 150/6 = 25 C ≤ 20
 Profit: 20 × $6 Z = $120

33

You might also like