Introduction IP formulation Facility location Machine scheduling Vehicle routing

Operations Research I: Models & Applications

Integer Programming

Ling-Chieh Kung

Department of Information Management

National Taiwan University

OR I: Integer Programming 1 / 45 Ling-Chieh Kung (NTU IM)

Introduction IP formulation Facility location Machine scheduling Vehicle routing

Road map

I Introduction to integer programming.

I Integer programming formulation.
I Facility location problems.
I Machine scheduling problems.
I Vehicle routing problems.

OR I: Integer Programming 2 / 45 Ling-Chieh Kung (NTU IM)

Introduction IP formulation Facility location Machine scheduling Vehicle routing

Integer programming

I We have worked with LPs.

I In some cases, variables must only take integer values.
I The subject of formulating and solving models with integer variables is
Integer Programming (IP).
I An IP is typically a linear IP (LIP).
I If the objective function or any functional constraint is nonlinear, it is a
nonlinear IP (NLIP).
I We will focus on linear IP.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Personnel scheduling (again)

I We know that United Airline developed an LP to determine the

number of staffs in each of their service locations.
I The same problem is faced by Taco Bell.
I It has more than 6500 restaurants in the US.
I It asks how many staffs to have at each restaurant in each shift.
I Taco Bell developed an Integer Program (i.e., an LP with integer
variables) to solve its workforce scheduling problem.
I The number of staffs is typically small! Rounding is very inaccurate.
I $13 million are saved per year. 1

1 Hueter, J., & Swart, W. (1998). An Integrated Labor-Management System for

Taco Bell. Interfaces, 28(1), 75-91.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Route selection

I Waste Management Inc. operates an recycling network with 293

landfill sites, 16 waste-to-energy plants, 72 gas-to-energy facilities, 146
recycling plants, 346 transfer stations, and 435 collection depots.
I 20000 routes must be go through by its vehicles in each day.
I How to determine a route?
I Construct a network with nodes and edges.
I Give each edge a binary variable: 1 if included and 0 otherwise.
I Constraints are required to make sure that selected edges are really
forming a route.
I A huge IP is constructed to save the company $498 million in
operational expenses over a 5-year period.2
2 Sahoo, S., Kim, S., Kim, B., Kraas, B., & Popov, A. (2005). Routing

Optimization for Waste Management. Interfaces, 35(1), 24-36.

OR I: Integer Programming 5 / 45 Ling-Chieh Kung (NTU IM)
Introduction IP formulation Facility location Machine scheduling Vehicle routing

Road map

I Introduction to integer programming.

I Integer programming formulation.
I Facility location problems.
I Machine scheduling problems.
I Vehicle routing problems.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

The knapsack problem

I We start our illustration with the classic knapsack problem.
I There are four items to select:

Item 1 2 3 4
Value ($) 16 22 12 8
Weight(kg) 5 7 4 3

I The knapsack capacity is 10 kg.

I We maximize the total value without exceeding the knapsack capacity.
I The complete formulation is

max 16x1 + 22x2 + 12x3 + 8x4

s.t. 5x1 + 7x2 + 4x3 + 3x4 ≤ 10
xi ∈ {0, 1} ∀i = 1, ..., 4.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Requirements on selecting variables

I Integer programming allows us to implement some selection rules.

I At least/most some items:
I Suppose we must select at least one item among items 2, 3, and 4:

x2 + x3 + x4 ≥ 1.
I Suppose we must select at most two items among items 1, 3, and 4:

x1 + x3 + x4 ≤ 2.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Requirements on selecting variables

I Or:
I Select item 2 or item 3:
x2 + x3 ≥ 1.
I Select item 2; otherwise, items 3 and 4 togehter:

2x2 + x3 + x4 ≥ 2.

I If-else:
I If item 2 is selected, select item 3:

x2 ≤ x3 .
I If item 1 is selected, do not select items 3 and 4:

2(1 − x1 ) ≥ x3 + x4 .

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

At least/most some constraints

I Using a similar technique, we may flexibly select constraints.
I Suppose satisfying one of the two constraints

g1 (x) ≤ b1 and g2 (x) ≤ b2 .

is enough. How to formulate this situation?

I Let’s define a binary variable

0 if g1 (x) ≤ b1 is satisfied,
z=
1 if g2 (x) ≤ b2 is satisfied.
I With Mi being an upper bound of each LHS, the following two
constraints implement what we need:

g1 (x) − b1 ≤ M1 z
g2 (x) − b2 ≤ M2 (1 − z).

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

At least/most some constraints

I Suppose at least two of the three constraints

gi (x) ≤ bi , i = 1, 2, 3.

must be satisfied. How to play the same trick?

I Let (
1 if gi (x) ≤ bi is satisfied,
zi =
0 if gi (x) ≤ bi may be unsatisfied.
I With Mi being an upper bound of each LHS, the following constraints
are what we need:
gi (x) − bi ≤ Mi (1 − zi ) ∀i = 1, ..., 3
z1 + z2 + z3 ≥ 2.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Fixed-charge constraints

I Consider the following example:

I n factories, 1 market, 1 product.
I Ki is the capacity of factory i.
I Ci is unit production cost at factory i.
I D is the demand of the product.
I We want to satisfy the demand with the
minimum cost.
I Setup cost at factory i: Si .
I One needs to pay the setup cost as long
as any positive amount of products is
produced.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Basic formulation
I Let the decision variables be
xi = production quantity at factory i, i = 1, ..., n,
(
1 if some products are produced at factory i, i = 1, ..., n,
yi =
0 o/w.

I Objective function:
n
X n
X
min Ci xi + Si yi .
i=1 i=1

I Capacity limitation:
xi ≤ Ki ∀i = 1, ..., n.
I Demand fulfillment:
n
X
xi ≥ D.
i=1

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Setup costs

I How may we know whether we need to pay the setup cost at factory i?
I If xi > 0, yi must be 1; if xi = 0, yi should be 0.
I So the relationship between xi and yi should be:

xi ≤ Ki yi ∀i = 1, ..., n.

I If xi > 0, yi cannot be 0.
I If xi = 0, yi can be 0 or 1. Why yi will always be 0 when xi = 0?
I Finally, binary and nonnegative constraints:

xi ≥ 0, yi ∈ {0, 1} ∀i = 1, ..., n.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Fixed-charge constraints

I The constraint xi ≤ Ki yi is known as a fixed-charge constraint.

I In general, a fixed-charge constraint is

x ≤ M y.

I Both x and y are decision variables.

I y ∈ {0, 1} is determined by x.
I M must be set to be an upper bound of x.
I When x is binary, x ≤ y is sufficient.
I We need to make M an upper bound of x.
I For example, Ki is an upper bound of xi in the factory example. Why?
I What if there is no capacity limitation?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Road map

I Introduction to integer programming.

I Integer programming formulation.
I Facility location problems.
I Machine scheduling problems.
I Vehicle routing problems.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Facility location problems

I One typical managerial decision is “where to build my facilities?”

I Where to open convenience stores?
I Where to build warehouses or distribution centers?
I Where to build factories?
I Where to build power stations, fire stations, or police stations?
I A similar question is “where to locate a scarce resource?”
I Where to put a limited number of fire engines or ambulances?
I Where to put a limited number of police officers?
I Where to put a limited number of ice cream machines?
I These problems are facility location problems.
I In this lecture, we focus on discrete facility location problems: We
choose a subset of locations from a set of finite locations.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Facility location problems

I In general, there are some demand nodes and some potential
locations.
I We build facilities at locations to serve demands.
I E.g., build distribution centers to ship to retail stores.
I E.g., build fire stations to cover cities, towns, and villages.
I Facility location problems are typically categorized based on their
objective functions.
I In this lecture, we introduce three types of facility location problems:
I Set covering problems: Build a minimum number of facilities to cover
all demands.
I Maximum covering problems: Build a given number of facilities to
cover as many demands as possible.
I Fixed charge location problems: Finding a balance between benefit
of covering demands and cost of building facilities.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Set covering problems

I Consider a set of demands I and a

set of locations J.
I The distance (or traveling time)
between demand i and location j is
dij > 0, i ∈ I, j ∈ J.
I A service level s > 0 is given:
Demand i is said to be “covered”
by location j if dij < s.
I Question: How to allocate as few
facilities as possible to cover all
demands?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Set covering problems

I Let’s define the following parameter:
aij = 1 if dij < s or 0 otherwise, i ∈ I,
j ∈ J.
I Let’s define the following variables:
xj = 1 if a facility is built at location
j ∈ J or 0 otherwise.
I The complete formulation is
X
min xj
j∈J
X
s.t. aij xj ≥ 1 ∀i ∈ I
j∈J

xj ∈ {0, 1}
∀j ∈ J.

I The weighted version: min j∈J wj xj .

P

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Maximum covering problems

I Consider a set of demands I and a

set of locations J.
I The distances dij , service level s,
and the covering coefficient aij are
also given.
I We are restricted to build at most
p ∈ N facilities.
I Question: How to allocate at most
p facilities to cover as many
demands as possible?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Maximum covering problems

I Still let xj = 1 if a facility is built at location j ∈ J or 0 otherwise.
I Also let yi = 1 if demand i ∈ I is covered by any facility or 0 otherwise.
I The complete formulation is
X
max yi
i∈I
X
s.t. aij xj ≥ yi ∀i ∈ I
j∈J
X
xj ≤ p
j∈J

xj ∈ {0, 1} ∀j ∈ J
yi ∈ {0, 1} ∀i ∈ I.

I The weighted version: max i∈I wi yi .

P

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Fixed charge location problems

I Consider a set of demands I and a

set of locations J.
I At demand i, the demand size is
hi > 0.
I The unit shipping cost from
location j to demand i is dij > 0.
I The fixed construction cost at
location j is fj > 0.
I Question: How to allocate some
facilities to minimize the total
shipping and construction costs?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Fixed charge location problems

I We still need xj s: xj = 1 if a facility is built at location j ∈ J or 0
otherwise.
I We now need yij s: yij = 1 if demand i ∈ I is served by facility at
location j ∈ J or 0 otherwise.
I The complete formulation is
XX X
min hi dij yij + fj xj
i∈I j∈J j∈J

s.t. yij ≤ xj ∀i ∈ I, j ∈ J
X
yij = 1 ∀i ∈ I
j∈J

xj ∈ {0, 1} ∀j ∈ J
yij ∈ {0, 1} ∀i ∈ I, j ∈ J.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Fixed charge location problems

I The previous model is the uncapacitated version.

I A facility can serve any amount of demand.
I If facility at location j has a limited capacity Kj > 0, we may add the
capacity constraint X
hi yij ≤ Kj ∀j ∈ J.
i∈I

I The capacitated version is usually called the capacitated facility

location problem (abbreviated as CFL). The uncapacitated one is
abbreviated as UFL.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Remarks

I When to use set covering?

I When we are required to take care of (almost) everyone.
I E.g., fire stations and police stations.
I When to use maximum covering?
I When budgets are limited.
I E.g., cellular data networks.
I When to use fixed charge location?
I When service costs depends on distances.
I E.g., distribution centers.

OR I: Integer Programming 26 / 45 Ling-Chieh Kung (NTU IM)

Introduction IP formulation Facility location Machine scheduling Vehicle routing

Road map

I Introduction to integer programming.

I Integer programming formulation.
I Facility location problems.
I Machine scheduling problems.
I Vehicle routing problems.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Machine scheduling problems

I In many cases, jobs/tasks must be assigned to machines/agents.
I As an example, consider a factory producing one product for n
customers.
I Serial production: Only one job can be processed at one time.
I Each job has its due date.
I How to schedule the n jobs to minimize the total number of delayed jobs?
I In this example, scheduling is nothing but sequencing.
I Splitting jobs is not helpful.
I There are n! ways to sequence the n jobs.
I Is there a way to formulate this problem (so that a solution may be
obtained by solving the model)?
I The problems of scheduling jobs/tasks to machines/agents are
machine scheduling problems.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Machine scheduling problems

I Machine scheduling problems may

be categorized in multiple ways:
I Production mode:
I Single machine serial production.
I Multiple parallel machines.
I Flow shop problems.
I Job shop problems.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Machine scheduling problems

I Job splitting:
I Non-preemptive problems.
I Preemptive problems.
I Performance measurement:
I Makespan (the time that all jobs
are completed).
I (Weighted) total completion time.
I (Weighted) number of delayed
jobs.
I (Weighted) total lateness.
I (Weighted) total tardiness.
I And more.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Minimizing single-machine total completion time

I Consider scheduling n jobs on a single machine.

I Job j ∈ J = {1, 2, ..., n} has processing time pj .
I Different schedules give these jobs different completion times. The
completion time of job j is denoted as xj .
I The machine can process only one job at a time.
I We aim to schedule all the jobs to minimize the total completion time
X
xj .
j∈J

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Minimizing single-machine total completion time

I Let’s use xj to be our decision variables.
I Suppose we schedule jobs 1, 2, ..., and n in this order, we will have
Pn
x1 = p1 , x2 = p1 + p2 , ..., and xn = i=1 pi .
I A Gantt chart is helpful to illustrate a schedule.

I Obviously, splitting jobs does not help for this problem (Why?).
I Because the machine can start job 2 only after job 1 is completed, we
have x2 ≥ x1 + p2 as a constraint. But what if job 2 should be
scheduled before job 1?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Minimizing single-machine total completion time

I In a feasible schedule, job i is either before or after job j, for all j 6= i.

I Therefore, we need to satisfy at least one of the following two
constraints:
xj ≥ xi + pj and xi ≥ xj + pi .
I Let zij = 1 if job j is before job i or 0 otherwise, i ∈ J, j ∈ J, i < j.
I The constraints we need:

xi + pj − xj ≤ M zij
xj + pi − xi ≤ M (1 − zij ).

I What value of M works?

I How about M =
P
j∈J pj ?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Minimizing single-machine total completion time

I The complete formulation is
X
min xj
j∈J

s.t. xi + pj − xj ≤ M zij ∀i ∈ J, j ∈ J, i < j

xj + pi − xi ≤ M (1 − zij ) ∀i ∈ J, j ∈ J, i < j
xj ≥ p j ∀j ∈ J
xj ≥ 0 ∀j ∈ J
zij ∈ {0, 1} ∀i ∈ J, j ∈ J, i < j.

I While there is a way to optimize the schedule (how?), the problem

becomes much harder if a job may be processed only after it is released.
I Let Rj be the release time of job j. How to add this into the model?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Minimizing makespan on parallel machines

I Consider scheduling n jobs on m parallel machines.
I Job j ∈ J = {1, 2, ..., n} has processing time pj .
I A job can be processed at any machine. However, it can be processed
only on one machine.

I Different schedules give these machines different completion times.

I The makespan of a schedule is the maximum completion time.
I How may we minimize the makespan?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Minimizing makespan on parallel machines

I As long as some jobs are assigned to a machine, the sequence on that
machine does not matter.
I The problem of minimizing makespan is just to assign jobs to
machines.
I Let xij = 1 if job j ∈ J is assigned to machine i ∈ I or 0 otherwise.
I On machine i ∈ I, the last job is completed at
X
pj xij .
j∈J

I The makespan w is the maximum completion time among all machines.

We have X
w≥ pj xij ∀i ∈ I.
j∈J

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Minimizing makespan on parallel machines

I The complete formulation is

min w
X
s.t. w ≥ pj xij ∀i ∈ I
j∈J
X
xij = 1 ∀j ∈ J
i∈I
xij ∈ {0, 1} ∀i ∈ I, j ∈ J.

I How may we ensure that w is indeed the makespan?

OR I: Integer Programming 37 / 45 Ling-Chieh Kung (NTU IM)

Introduction IP formulation Facility location Machine scheduling Vehicle routing

Road map

I Introduction to integer programming.

I Integer programming formulation.
I Facility location problems.
I Machine scheduling problems.
I Vehicle routing problems.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Vehicle routing problems

I In many cases, we need to deliver/collect items
to/from customers in the most efficient way.
I E.g., consider a post officer who needs to deliver
to four addresses.
I The shortest path between any pair of two
addresses can be obtained.
I This is a routing problem: To choose a route
starting from the office, passing each address
exactly once, and then returning to the office.
I This is a sequencing problem; in total there are
4! = 24 feasible routes.
I Which route minimizes the total distance (or
travel time)?

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Vehicle routing problems

I The problem described above is the famous

traveling salesperson problem.
I It assumes that the truck has ample capacity.
I Consider the truck towing bicycles in NTU. It
must start at the car pound, pass several
locations in NTU, and then return to the origin.
I However, the truck capacity is quite limited
(because too many people violate the parking
regulation).
I The driver needs to find multiple routes to cover
all the locations.
I The traveling salesperson problem (TSP) is a
special case of vehicle routing problems.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Traveling salesperson problem

I How to formulate the TSP into an integer program?
I Let’s consider a directed complete network
G = (V, E).
I There are n nodes and n(n − 1) arcs.
I The arc weight for arc (i, j) is dij > 0.
I We select a few arcs in E to form a tour.
I To form a tour, we need to select n arcs.
I These n arcs should form a cycle passing all nodes.
I Let xij = 1 if arc (i, j) ∈ E is selected or 0 otherwise.
I The objective:
X
min dij xij .
(i,j)∈E

I How to ensure the routing requirement?

X
I Is dij xij = n enough?
(i,j)∈E

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Traveling salesperson problem

I For node k ∈ V :
I We must select exactly one incoming arc:
X
xik = 1.
i∈V,i6=k

I We must select exactly one outgoing arc:

X
xkj = 1.
j∈V,j6=k

I Now each node is on a cycle.

I However, these are not enough to prevent
subtours.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Eliminating subtours: alternative 1

I There are at least two ways to eliminate subtours.

I For each subset of nodes with at least two
nodes, we limit the maximum number of arcs
selected:
X
xij ≤ |S| − 1 ∀S ( V, |S| ≥ 2.
i∈S,j∈S,i6=j

I When we have n nodes, we have 2n − n − 2

constraints.
I 2n ways to choose a subset.
I n ways to choose a subset of one node.
I 2 ways to choose a subset of zero node or n nodes.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Eliminating subtours: alternative 2

I Let ui s represent the order of passing nodes. More precisely, ui = k if
node i is the kth node to be passed in a tour.
I We add the following constraints:

u1 = 1
2 ≤ ui ≤ n ∀i ∈ V \ {1}
ui − uj + 1 ≤ (n − 1)(1 − xij ) ∀(i, j) ∈ E, i 6= 1, j 6= 1.

I If xij = 0, there is no constraint for ui and uj ; otherwise, uj must be

larger than ui by at least 1.
I If a tour does not contain node 1, the last constraint pushes those ui s to
infinity and violates constraint 2.
I Note that only node 1 is not restricted by these constraints!
I When we have n nodes, we have n additional variables and
2n − 1 + (n − 1)(n − 2) constraints.

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Introduction IP formulation Facility location Machine scheduling Vehicle routing

Complete formulation

I The complete formulation is

X
min dij xij
(i,j)∈E
X
s.t. xik = 1 ∀k ∈ V
i∈V,i6=k
X
xkj = 1 ∀k ∈ V
j∈V,j6=k

xij ∈ {0, 1} ∀(i, j) ∈ E.

with either alternative 1 or alternative 2.

I Which alternative is better?

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