EXTRA QUESTIONS

1. A manager should select at least 3 projects from 6 available projects. Information regarding the
projects is given in the table below. Total available budget is 800,000 TL.

Project 1 2 3 4 5 6
Profit 150 200 180 170 165 100
(in thousands)
Cost
80 120 150 100 55 30
(in thousands)

There are also some additional requirements:

1. Projects 3 and 4 cannot be chosen together

2. If project 2 is selected, then project 1 should be selected as well
3. Both projects 3 and 5 are selected or none.

Formulate the problem as 0-1 IP to maximize profit.

2. İşgüzar Company is planning to produce three product types: product 1, product 2, and product
3. In order to produce these products, the company must rent the appropriate machines at a monthly
cost of $2,000, $2,500, and $1,500 for product 1, product 2, and product 3, respectively. The
monthly production capacity of each machine is 1,000 units for the corresponding product. The
labor and raw material requirements as well as selling price and variable cost for each product are
provided in the following table.

Labor Hour Raw material (kg) Selling Price ($) Variable Cost ($)
Product 1 3 10 110 82
Product 2 4 12 135 97
Product 3 2 5 50 32
Availability (per month) 2,500 4,000

It is also stated that if a product is produced, the amount should be integer. Formulate the problem
to maximize profit.
3. A truck with the capacity to load 2,200 cubic feet of cargo is available to transport items selected
from the following table.

ITEM VALUE VOLUME (CU. FT.)

A $1,800 700
B $1,400 600
C $1,100 450
D $900 400
E $1,600 650
F $1,100 350
G $1,200 600
If selected, an item must be shipped in its entirety (i.e., partial shipments are not allowed). Of items
B, C and D, at least two items must be selected. Items B and G cannot be selected at the same time.
Which items should be selected to maximize the value of the shipment? Formulate this problem
as an IP.

4. A hospital is planning an $8 million addition to its existing facility. The architect has been asked
to consider the following design parameters:
(1) There should be at least 10 and no more than 20 intensive care unit (ICU) rooms;
(2) There should be at least 10 and no more than 20 cardiac care unit (CCU) rooms;
(3) There should be no more than 50 double rooms;
(4) There should be at least 35 single rooms;
(5) All patient rooms should fit inside the allotted 40,000-square-foot space (not including
hallways).
The following table summarizes the relevant room data:

SINGLE DOUBLE ICU CCU

Cost per room to build and furnish ($thousands) $45 $54 $110 $104
Minimum square feet required 300 360 320 340
Profit per room per month ($thousands) $21 $28 $48 $41

How many rooms of each type should the architect include in the new hospital design? Formulate
this problem as an IP.
5. A committee in charge of promoting a Ladies Professional Golf Association tournament is trying
to determine how best to advertise the event during the 2 weeks prior to the tournament. The
committee obtained the following information about the three advertising media they are
considering to use.

Audience Reached Cost per Maximum Amount of

Category per Advertisement Advertisement Advertisements
TV 200,000 $2500 10
Radio 50,000 $400 15
Newspaper 100,000 $500 20

The agency has established the following, equally important goals for the campaign.
Goal 1: Reach at least 4 million people.
Goal 2: The amount of television ads should be at least 30% of the total amount of advertisements.
Goal 3: The amount of radio ads should not exceed 20% of the total amount of advertisements.
Goal 4: Limit the total amount spent for advertising to $20,000.
Formulate a goal programming model for this problem.

6. The city council of Aberdeen must determine the tax policy for the city for the coming year.
Four types of taxes are used to raise money: property tax, sales tax, entertainment tax, utility tax
The city consists of three groups of people: low income, middle income and high income. The
amount of revenue raised from each group by setting a particular tax at a 1 percent level is given
in the following table. For example, a 3 percent sales tax will raise $1200 from low-income people.
Entertainment
Income Group Property Tax ($) Sales Tax ($) Utility Tax ($)
Tax ($)
Low-income 600 400 50 100
Middle-income 800 350 100 120
High-income 1200 250 120 80
The city council has decided that the tax policy must satisfy the following restrictions.
 The tax burden on middle-income people cannot exceed $2,500.
 The tax burden on high-income people cannot exceed $2,300.
 The total revenue raised must be at least the current level of $6,000.
 The sales tax must be between 1 percent and 3 percent.

Given these restrictions, the city council has set the following two goals:
Goal 1: Limit the tax burden on low-income people to no more than $2000.
Goal 2: Set the property tax rate at no less than 1 percent.

According to the city council, the first goal is 3 times more important than the second goal. Use
goal programming to determine how the various tax rates should be set.
ANSWERS
1.
Decision Variables:
Xi= 1, if project i is selected, i=1, 2, 3, 4, 5, 6
0, otherwise

Max 150 X1 + 200 X2 + 180 X3+ 170 X4+ 165 X5+ 100 X6
s.t.
80 X1 + 120 X2 + 150 X3+ 100 X4+ 55 X5+ 30 X6 ≤ 800 (budget constraint)
X1 + X2 + X3+ X4+ X5+ X6 ≥ 3 (at least 3 projects selected)
X3 + X4 ≤ 1 (additional requirement 1)
X2 ≤ X1 (additional requirement 2)
X5 = X3 (additional requirement 3)
X1, X2, X3, X4, X5, X6 are binary.

2.
Decision Variables:
Xi = the amount of product i to be produced,
Yi = 1 if product i is produced
0 if product i is not produced
where i = 1, 2, 3

Max (110-82)X1 + (135-97)X2 + (50-32)X3 – 2,000Y1 – 2,500Y2 – 1,500Y3

s. t.
3X1 + 4X2 + 2X3 ≤ 2,500 (labor hour)
10X1 + 12X2 + 5X3 ≤ 4,000 (raw material)
Xi - 1,000Yi ≤ 0 (capacity for machine i) for all i = 1, 2, 3
Xi ≥ 0 and integer for all i = 1, 2, 3
Yi is binary for all i = 1, 2, 3
3.
Decision Variables:
Xi = 1 if item i is selected i =A, B, …, G.
0 if item i is not selected
Max 1,800XA + 1,400XB + 1,100XC + 900XD + 1,600XE + 1,100XF + 1,200XG
s.t.
700XA + 600XB + 450XC + 400XD + 650XE + 350XF + 600XG ≤ 2,200
XB + XC + XD ≥ 2
XB + XG ≤ 1
All variables are binary.

4.
Decision Variables:
Xi = number of rooms designed for type i, i = s, d, ic, cc (single, double, ICU and CCU)

Max 21Xs + 28Xd + 48Xic + 41Xcc

s.t.
45Xs + 54Xd + 110Xic + 104Xcc ≤ 8,000 ($ available)
300Xs + 360Xd + 320Xic + 340Xcc ≤ 40,000 (Space)
Xd ≤ 50 (Max Double)
Xic ≤ 20 (Max ICU)
Xcc ≤ 20 (Max CCU)
Xs ≥ 35 (Min Single)
Xic ≥ 10 (Min ICU)
Xcc ≥ 10 (Min CCU)
All variables are nonnegative and integer.
5. Decision Variables:
x1 = amount (number, time) of TV advertisements
x2 = amount (number, time) of radio advertisements
x3 = amount (number, time) of newspaper advertisements
𝑑𝑖− = underachievement of goal i for i=1,2,3,4
𝑑𝑖+ = overachievement of goal i for i=1,2,3,4

Min 𝑑1− + 𝑑2− + 𝑑3+ + 𝑑4+

s.t.
x1 ≤ 10 (TV)
x2 ≤ 15 (Radio) Hard
x3 ≤ 20 (Newspaper) Constraints

20x1 + 5x2 + 10x3 + 𝑑1− - 𝑑1+ = 400 (Goal 1)

0.7x1 - 0.3x2 - 0.3x3 + 𝑑2− - 𝑑2+ = 0 (Goal 2)
Soft
-0.2x1 + 0.8x2 - 0.2x3 + 𝑑3− - 𝑑3+ = 0 (Goal 3)
Constraints
25x1 + 4x2 + 5x3 + 𝑑4− - 𝑑4+ = 200 (Goal 4)

x1, x2, x3, 𝑑1− , 𝑑2− , 𝑑3− , 𝑑4− , 𝑑1+ , 𝑑2+ , 𝑑3+ , 𝑑4+ ≥ 0

6.
Decision Variables:
Xi = Tax rate for tax type i where i=P, S, E, U
𝑑𝑖− = underachievement of goal i for i=1,2
𝑑𝑖+ = overachievement of goal i for i=1,2

Min 3𝑑1+ + 𝑑2−

s.t.
800XP + 350XS + 100XE + 120XU ≤ 2500
1200XP + 250XS + 120XE + 80XU ≤ 2300 Hard
Constraints
(600+800+1200)XP + (400+350+250)XS + (50+100+120)XE + (100+120+80)XU ≥ 6000
XS ≥ 1
XS ≤ 3
600XP + 400XS + 50XE + 100XU + 𝑑1− - 𝑑1+ = 2000 Soft
XP + 𝑑2− - 𝑑2+ =1 Constraints
XP, XS, XE, XU, 𝑑1− , 𝑑1+ , 𝑑2− , 𝑑2+ ≥ 0