Integer Linear

Programming Models

Chapter 5

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 Chapter Topics

● Integer Programming (IP) Models

● Integer Programming Graphical Solution

● Computer Solution of Integer Programming
Problems With Excel and QM for Windows
● 0-1 Integer Programming Modeling Examples

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 Integer Programming Models
Types of Models

Total Integer Model: All decision variables required to have

integer solution values.

0-1 Integer Model: All decision variables required to have

integer values of zero or one.

Mixed Integer Some of the decision variables (but not

Model: all) required to have integer values.

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 A Total Integer Model (1 of 2)

■ Machine shop obtaining new presses and lathes.

■ Marginal profitability: each press $100/day; each lathe $150/day.
■ Resource constraints: $40,000 budget, 200 sq. ft. floor space.
■ Machine purchase prices and space requirements:

Required
Machine Floor Space (ft.2) Purchase Price

Press 15 $8,000

Lathe 30 4,000

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 A Total Integer Model (2 of 2)

Integer Programming Model:

Maximize Z = $100x1 + $150x2

subject to:
$8,000x1 + 4,000x2 $40,000
15x1 + 30x2 200 ft2
x1, x2 0 and integer
x1 = number of presses
x2 = number of lathes

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 A 0 - 1 Integer Model (1 of 2)

■ Recreation facilities selection to maximize daily usage by

residents.

■ Resource constraints: $120,000 budget; 12 acres of land.

■ Selection constraint: either swimming pool or tennis center (not

both).
Expected Usage Land Requirement
Recreation
(people/day) Cost ($) (acres)
Facility
Swimming pool 300 35,000 4
Tennis Center 90 10,000 2
Athletic field 400 25,000 7
Gymnasium 150 90,000 3

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 A 0 - 1 Integer Model (2 of 2)

Integer Programming Model:

Maximize Z = 300x1 + 90x2 + 400x3 + 150x4
subject to:
$35,000x1 + 10,000x2 + 25,000x3 + 90,000x4 $120,000
4x1 + 2x2 + 7x3 + 3x4 12 acres
x1 + x2 1 facility
x1, x2, x3, x4 = 0 or 1
x1 = construction of a swimming pool
x2 = construction of a tennis center
x3 = construction of an athletic field
x4 = construction of a gymnasium
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 A Mixed Integer Model (1 of 2)

■ $250,000 available for investments providing greatest return after

one year.
■ Data:
● Condominium cost $50,000/unit; $9,000 profit if sold after
one year.
● Land cost $12,000/ acre; $1,500 profit if sold after one year.
● Municipal bond cost $8,000/bond; $1,000 profit if sold after
one year.
● Only 4 condominiums, 15 acres of land, and 20 municipal
bonds available.

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 A Mixed Integer Model (2 of 2)

Integer Programming Model:

Maximize Z = $9,000x1 + 1,500x2 + 1,000x3
subject to:
50,000x1 + 12,000x2 + 8,000x3 $250,000
x1 4 condominiums
x2 15 acres
x3 20 bonds
x2 0
x1, x3 0 and integer
x1 = condominiums purchased
x2 = acres of land purchased
x3 = bonds purchased
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 Integer Programming Graphical Solution

■ Rounding non-integer solution values up to the nearest integer

value can result in an infeasible solution.

■ A feasible solution is ensured by rounding down non-integer

solution values but may result in a less than optimal (sub-
optimal) solution.

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 Integer Programming Example
Graphical Solution of Machine Shop Model

Maximize Z = $100x1 + $150x2

subject to:
8,000x1 + 4,000x2 $40,000
15x1 + 30x2 200 ft2
x1, x2 0 and integer

Optimal Solution:
Z = $1,055.56
x1 = 2.22 presses
x2 = 5.55 lathes

Figure 5.1 Feasible Solution Space with Integer Solution Points

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 Branch and Bound Method

■ Traditional approach to solving integer programming problems.

● Feasible solutions can be partitioned into smaller subsets
● Smaller subsets evaluated until best solution is found.
● Method is a tedious and complex mathematical process.

■ Excel and QM for Windows used in this book.

■ See book’s companion website – “Integer Programming: the

Branch and Bound Method” for detailed description of this
method.

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 Computer Solution of IP Problems
0 – 1 Model with Excel (1 of 5)

Recreational Facilities Example:

Maximize Z = 300x1 + 90x2 + 400x3 + 150x4

subject to:
$35,000x1 + 10,000x2 + 25,000x3 + 90,000x4 $120,000
4x1 + 2x2 + 7x3 + 3x4 12 acres
x1 + x2 1 facility
x1, x2, x3, x4 = 0 or 1

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 Computer Solution of IP Problems
0 – 1 Model with Excel (2 of 5)

Exhibit
5.2
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 Computer Solution of IP Problems
0 – 1 Model with Excel (3 of 5)

Exhibit
5.3
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 Computer Solution of IP Problems
0 – 1 Model with Excel (4 of 5)

Exhibit
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5.4 5-0

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 Computer Solution of IP Problems
0 – 1 Model with Excel (5 of 5)

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Exhibit 5.5 5-0

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 Computer Solution of IP Problems
0 – 1 Model with QM for Windows (1 of 3)

Recreational Facilities Example:

Maximize Z = 300x1 + 90x2 + 400x3 + 150x4
subject to:
$35,000x1 + 10,000x2 + 25,000x3 + 90,000x4 $120,000
4x1 + 2x2 + 7x3 + 3x4 12 acres
x1 + x2 1 facility
x1, x2, x3, x4 = 0 or 1

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 Computer Solution of IP Problems
0 – 1 Model with QM for Windows (2 of 3)

Exhibit 5.6
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 Computer Solution of IP Problems
0 – 1 Model with QM for Windows (3 of 3)

Exhibit 5.7
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 Computer Solution of IP Problems
Total Integer Model with Excel (1 of 5)

Integer Programming Model of Machine Shop:

Maximize Z = $100x1 + $150x2

subject to:
8,000x1 + 4,000x2 $40,000
15x1 + 30x2 200 ft2
x1, x2 0 and integer

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 Computer Solution of IP Problems
Total Integer Model with Excel (2 of 5)

Exhibit 5.8
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 Computer Solution of IP Problems
Total Integer Model with Excel (4 of 5)

Exhibit 5.9
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 Computer Solution of IP Problems
Total Integer Model with Excel (3 of 5)

Exhibit
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5.10 5-0

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 Computer Solution of IP Problems
Total Integer Model with Excel (5 of 5)

Exhibit 5.11 5-0

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 Computer Solution of IP Problems
Mixed Integer Model with Excel (1 of 3)

Integer Programming Model for Investments Problem:

Maximize Z = $9,000x1 + 1,500x2 + 1,000x3
subject to:
50,000x1 + 12,000x2 + 8,000x3 $250,000
x1 4 condominiums
x2 15 acres
x3 20 bonds
x2 0
x1, x3 0 and integer

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 Computer Solution of IP Problems
Total Integer Model with Excel (2 of 3)

Exhibit 5.12
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 Computer Solution of IP Problems
Solution of Total Integer Model with Excel (3 of 3)

Exhibit 5.13
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 Computer Solution of IP Problems
Mixed Integer Model with QM for Windows (1 of
2)

Exhibit 5.14
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 Computer Solution of IP Problems
Mixed Integer Model with QM for Windows (2 of
2)

Exhibit 5.15
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 0 – 1 Integer Programming Modeling Examples
Capital Budgeting Example (1 of 4)
■ University bookstore expansion project.
■ Not enough space available for both a computer department and a
clothing department.
■ ATM takes the integer (0,1,2,3,….); other project takes either 0 or 1
NPV Return Project Costs per Year ($1000)
Project
($1,000s) 1 2 3

1. Web site $120 $55 $40 $25

2. Warehouse 85 45 35 20
3. Clothing department 105 60 25 --
4. Computer department 140 50 35 30
5. ATMs 75 30 30 --

Available funds per year 150 110 60

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 0 – 1 Integer Programming Modeling Examples
Capital Budgeting Example (2 of 4)
x1 = selection of web site project
x2 = selection of warehouse project
x3 = selection clothing department project
x4 = selection of computer department project
x5 = selection of ATM project
xi = 1 if project “i” is selected, 0 if project “i” is not selected

Maximize Z = $120x1 + $85x2 + $105x3 + $140x4 + $70x5

subject to:
55x1 + 45x2 + 60x3 + 50x4 + 30x5 150
40x1 + 35x2 + 25x3 + 35x4 + 30x5 110
25x1 + 20x2 + 30x4 60
x3 + x4 1
xi = 0 or 1 5-0
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 0 – 1 Integer Programming Modeling Examples
Capital Budgeting Example (3 of 4)

Exhibit
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 0 – 1 Integer Programming Modeling Examples
Capital Budgeting Example (4 of 4)

Exhibit
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 0 – 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (1 of 4)
Which of six farms should be purchased that will meet current
production capacity at minimum total cost, including annual
fixed costs and shipping costs?
Available Plant ($/ton shipped)
Plant Capacity
(tons,1000s) Farm A B C
A 12
B 10 1 18 15 12
C 14 2 13 10 17
Farms Annual Fixed Projected Annual 3 16 14 18
Costs Harvest (tons, 1000s) 4 19 15 16
($1000)
1 405 11.2 5 17 19 12
2 390 10.5 6 14 16 12
3 450 12.8
4 368 9.3
5 520 10.8
6 465 9.6

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 0 – 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (2 of 4)
yi = 0 if farm i is not selected, and 1 if farm i is selected; i = 1,2,3,4,5,6
xij = potatoes (1000 tons) shipped from farm I to plant j; j = A,B,C.
Minimize Z = 18x1A+ 15x1B+ 12x1C+ 13x2A+ 10x2B+ 17x2C+ 16x3+ 14x3B
+18x3C+ 19x4A+ 15x4b+ 16x4C+ 17x5A+ 19x5B+12x5C+ 14x6A
+ 16x6B+ 12x6C+ 405y1+ 390y2+ 450y3+ 368y4+ 520y5+ 465y6
subject to:
x1A + x1B + x1B - 11.2y1 ≤ 0 x2A + x2B + x2C -10.5y2 ≤ 0
x3A + x3A + x3C - 12.8y3 ≤ 0 x4A + x4b + x4C - 9.3y4 ≤ 0
x5A + x5B + x5B - 10.8y5 ≤ 0 x6A + x6B + X6C - 9.6y6 ≤ 0

x1A + x2A + x3A + x4A + x5A + x6A = 12

x1B + x2B + x3B + x4B + x5B + x6B = 10
x1C + x2C + x3C + x4C + x5C + x6C = 14

xij ≥ 0 yi = 0 or 1

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 0 – 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (3 of 4)

Exhibit
5-0
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5.18

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 0 – 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (4 of 4)

Exhibit
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5.19 5-0

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 0 – 1 Integer Programming Modeling Examples
Set Covering Example (1 of 4)
APS wants to construct the minimum set of new hubs in these
twelve cities such that there is a hub within 300 miles of every city:
Cities Cities within 300 miles
1. Atlanta Atlanta, Charlotte, Nashville
2. Boston Boston, New York
3. Charlotte Atlanta, Charlotte, Richmond
4. Cincinnati Cincinnati, Detroit, Indianapolis, Nashville, Pittsburgh
5. Detroit Cincinnati, Detroit, Indianapolis, Milwaukee, Pittsburgh
6. Indianapolis Cincinnati, Detroit, Indianapolis, Milwaukee, Nashville, St. Louis
7. Milwaukee Detroit, Indianapolis, Milwaukee
8. Nashville Atlanta, Cincinnati, Indianapolis, Nashville, St. Louis
9. New York Boston, New York, Richmond
10. Pittsburgh Cincinnati, Detroit, Pittsburgh, Richmond
11. Richmond Charlotte, New York, Pittsburgh, Richmond
12. St. Louis Indianapolis, Nashville, St. Louis

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 0 – 1 Integer Programming Modeling Examples
Set Covering Example (2 of 4)
xi = city i, i = 1 to 12; xi = 0 if city is not selected as a hub and xi = 1 if it is.
Minimize Z = x1 + x2 + x3 + x4 + x5 + x6 + x7 + x8 + x9 + x10 + x11 + x12
subject to: Atlanta: x1 + x3 + x8 1
Boston: x2 + x10 1
Charlotte: x1 + x3 + x11 1
Cincinnati: x4 + x5 + x6 + x8 + x10 1
Detroit: x4 + x5 + x6 + x7 + x10 1
Indianapolis: x4 + x5 + x6 + x7 + x8 + x12 1
Milwaukee: x5 + x6 + x7 1
Nashville: x1 + x4 + x6+ x8 + x12 1
New York: x2 + x9+ x11 1
Pittsburgh: x4 + x5 + x10 + x11 1
Richmond: x3 + x9 + x10 + x11 1
St Louis: x6 + x8 + x12 1 xij = 0 or 1

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 0 – 1 Integer Programming Modeling Examples
Set Covering Example (3 of 4)

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Exhibit 5.20 5-0

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 0 – 1 Integer Programming Modeling Examples
Set Covering Example (4 of 4)

Exhibit 5.21
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 Total Integer Programming Modeling Example
Problem Statement (1 of 3)
■ Textbook company developing two new regions.
■ Planning to transfer some of its 10 salespeople into new regions.
■ Average annual expenses for sales person:
▪ Region 1 - $10,000/salesperson
▪ Region 2 - $7,500/salesperson
■ Total annual expense budget is $72,000.
■ Sales generated each year:
▪ Region 1 - $85,000/salesperson
▪ Region 2 - $60,000/salesperson
■ How many salespeople should be transferred into each region in order
to maximize increased sales?

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 Total Integer Programming Modeling Example
Model Formulation (2 of 3)
Step 1:
Formulate the Integer Programming Model
Maximize Z = $85,000x1 + 60,000x2
subject to:
x1 + x2 10 salespeople
$10,000x1 + 7,000x2 $72,000 expense budget
x1, x2 0 or integer
Step 2:
Solve the Model using QM for Windows

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 Total Integer Programming Modeling Example
Solution with QM for Windows (3 of 3)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 5-0

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 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 5-0

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