Integer Programming and nonlinear models

1 Princess Brides pure integer programming problem

2 Bolsa de Café mixed integer programming problems
3 Art Posters pure integer programming problem
4 Binary Investment Decision Binary integer programming
5 Horizon Wireless Binary integer programming
6 Portfolio Variance Non linear programming
7 Baseball Stadium Non linear programming
8 assignment Integer Programming and Nonlinear Programming
9
Princess Brides
In this lesson, we will continue to use linear programming and Solver to decide how to best allocate limited resources. We will
linear programming problem: one where the solutions cannot include fractions or decimals. Read the problem below carefully
start setting up a spreadsheet model of your own. Then, watch the next video in the course to see a solution.

Scenario
Liz Bailey is the owner of Princess Brides, a wedding dress retailer. She uses radio to market and two types of ads are available
and those at other times. Each prime time ad costs $390 and reaches 8,200 people on average. Off-peak ads cost $240 and rea
Bailey has a budget of $1800 per week for advertising. She wants at least 2 prime time ads and no more than 6 off-peak ads. F
purchase so the most people are reached.

cost reach const

prime time 390 8,200 per ad least 2
other times 240 5,100 no more than 6
budget 1800 per week

prime time other times

4 1
cost 390 240
reach 8,200 5,100
Total reach 37900

Const LHS Sign RHS

budget 1 1 1800 <= 1800
prime time 1 0 4 >= 2
other times 0 1 1 <= 6

Add intiger constraint in the solver

mited resources. We will look at a more specific type of
problem below carefully. If you’d like, take notes and
lution.

pes of ads are available – those during prime time

ak ads cost $240 and reach 5,100 people on average.
e than 6 off-peak ads. Find the best mix of ads to
Bolsa de Café is a specialty coffee shop selling custom blends of coffee using 3 types of beans. They sell two products: 20 lb b
and individual bags of ground beans sold by the pound in bulk. The ground beans can be produced in any quantity. Both bags
beans. The 20lb bags sell for $85 and bags of ground beans sell for $1.50/lb. Find the number of 20lb bags and number of po
subject to the constraints in the table below so that profit is maximized.

Product A Prodct B
Quantity 44 20
Lb 20 1.1
price $ 85.00 $ 1.50

profit 3770

Bean Units per 20 lb bag Units per lb LHS Sign RHS

A 30 0.5 1330 <= 2000
B 18 0.4 800 <= 800
C 2 0.1 90 <= 200
ey sell two products: 20 lb bags of blended coffee beans (whole)
d in any quantity. Both bags are composed of three different
20lb bags and number of pounds of ground beans to produce
University art student Hilda Hernandez runs a small business printing and selling wall posters. She sells two
sizes of wall posters, a large 3- by 4-foot poster and a smaller 2- by 3-foot poster. The profit earned from the
sale of each large poster is $5; each smaller poster earns $7. Because of her classroom schedule, Hilda has
the following weekly constraints: (1) up to four large posters can be sold, (2) up to six smaller posters can be
sold, and (3) up to 15 hours can be spent on posters during the week, with each large poster requiring 3
hours of work and each smaller one taking 1.5 hour.

With the semester almost over, Hilda plans on taking a 3-month summer vacation to England. She wants to
maximize her profit in her final week before leaving, and she doesn’t want to leave any unfinished posters
behind.

large smaller
2 6
profit 5 7
hrs 3 1.5
Total profit 52

LHS Sign RHS

large 1 0 2 <= 4
smaller 0 1 6 <= 6
hrs 3 1.5 15 <= 15
A financial investment firm specializes in recommending oil stock portfolios for clients. One such client made the following sp

At least two Texas oil firms must be in the portfolio

No more than one investment can be made in foreign oil companies (companies outside of the United States).

One of two California oil stocks must be purchased.

Up to $3 million for investing to purchase single blocks of stock per table below.

Find the allocation of investments to maximize the return.

Name Expected Annual Return ($1000) Cost for Block of Shares ($1000)
Trans-Texas Oil 50 480
British Petroleum (BP) 80 540
Dutch Shell 90 680
Houston Drilling 120 1000
Texas Petroleum 110 700
San Diego Oil 40 510
California Petro. 75 900

Name Trans-Texas Oil British Petroleum (BP)

Buy sale (0,1) 0 0
Expected Annual Return ($1000) 50 80
Cost for Block of Shares ($1000) 480 540

Return 360

Const
Texas 1
1

budget 480 540

e such client made the following specifications:

f the United States).

Dutch Shell Houston Drilling Texas Petroleum San Diego Oil California Petro.
1 1 1 1 0
90 120 110 40 75
680 1000 700 510 900

Lhs sign rhs

1 1 2 >= 2
1 1 <= 1
1 1 1= 1
680 1000 700 510 900 2890 <= 3000
Horizon Wireless, a cellular telephone company, is expanding into a new city. Relay towers are necessary to provide wireless t
superimposed on a map of the city to help determine where the towers should be located. The grid consists of 8 areas labeled
identified, and each location could serve several areas. The table below indicates the areas served by each of the towers.

Horizon wants to make sure that all areas of the city are served, while minimizing the number of towers that need to be built.

Tower Location Areas Served

L1 A, C, D
L2 B, D, G
L3 B, C, E, F
L4 E, F, H
L5 D, G, H
L6 A, D, F

L1 L2 L3 L4 L5 L6
1 1 0 1 0 0

L1 L2 L3 L4 L5 L6
A 1 1 >=
B 1 1 1 1 >=
C 1 1 1 >=
D 1 1 1 1 2 >=
E 1 1 1 >=
F 1 1 1 1 >=
G 1 1 1 >=
H 1 1 1 >=

Total tower 3
cessary to provide wireless telephone coverage to the different areas of the city. A grid is
d consists of 8 areas labeled A through H. Six possible tower locations (numbered L1–L6) have been
by each of the towers.

owers that need to be built.

1
1
1
1
1
1
1
1
 x y
93% 7%

Non linear variables

X^2 XY Y^2
0.865333 0.0649 0.004867
0.16 0.2 0.9

Objective min
Variance 0.155814

Constraints
All fund invested means the total fund in persent

All funds 1 1 100% = 100%

Exp return 11% 8% 11% >= 9%
 XJ6 XJ8
X Y 4-0.1X 5-0.2Y
8 16 3.2 1.8

Revenue R 54.4

Hrs 1 2 40 <= 40
Price 20000.399962
Sales 1.999960004
fixed cost 1500
variable cost 0.8
Total cost 1501.599968
Total revenue 39999.999984
Total profit 38498.40002
 math textbook manufacturing company

Geometry Calculus
Count 35 50
profit 80 45
assembly 3 5
proofing 4 2

Profit 5050

LHS Sign RHS

assembly 3 5 355 <= 360
proofing 4 2 240 <= 240

M&T Stadium
Price 3.8
Demand 32000 =-10000*B39+70000
Fixed cost 2,500
variable costs 0.6
Revenue 121600 =B39*B40
Total cost 21700
Profit 99900