21-01-2025

Integer Programming
Sessions 9 - 10

Integer Programming Problems (IPPs)

 In linear programming, each decision variable, slack

and/or surplus variable is allowed to take any discrete or
fractional value.
 However, there are certain real-life problems in which
the fractional value of the decision variables has no
significance.
 For example, it does not make sense to say that 1.5 men will be
working on a project or 1.6 machines will be used in a workshop.

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Integer Programming Problems

 Integer LP problems are those in which some or all of the

variables are restricted to non-negative integer (or
discrete) values.
 An integer LP problem has important applications.
 Capital budgeting, construction scheduling, plant location
and size, routing and shipping schedule, batch size,
capacity expansion, etc., are few problems that
demonstrate the areas of application of integer
programming.

Types of IPPs

Linear integer programming problems can be

classified into three categories:
i. Pure (all) integer programming problems in which all
decision variables are restricted to integer values.
ii. Mixed integer programming problems in which
some, but not all, of the decision variables are
restricted to integer values.
iii. Zero-one integer programming problems in which all
decision variables are restricted to integer values of
either 0 or 1.

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Pure or all-integer programming

problem example
Maximize 𝑍 = 20𝑥1 + 8𝑥2
Subject to:
5𝑥1 + 6𝑥2 ≤ 63
3𝑥1 + 5𝑥2 ≤ 42
𝑥1 , 𝑥2 ≥ 0, 𝑥1 , 𝑥2 integer

Mixed-integer programming problem

example
Maximize 𝑍 = 20𝑥1 + 8𝑥2
Subject to:
5𝑥1 + 6𝑥2 ≤ 63
3𝑥1 + 5𝑥2 ≤ 42
𝑥1 , 𝑥2 ≥ 0, 𝑥1 integer

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Example 1

 The owner of a ready-made garments store sells two types of

premium shirts, known as Zee-shirts and Star-shirts. He makes a
profit of ₹200 and ₹300 per shirt on Zee- and Start-shirts,
respectively. He has two tailors, A and B, at his disposal to
stitch the shirts. Taylor A can devote a total of 17 hours per
day, while tailor B can give at the most 15 hours per day. Both
type of shirts are stitched by both the tailor. The time needed
to stitch a Zee-shirt is two hours by tailor A and three hours by
tailor B. Similarly, a Star-shirt requires 4 hours by tailor A and 3
hours by tailor B. How many shirts of each type should be
stitched in order to maximize daily profit? Formulate it as a
linear integer programming problem.

Example 1 contd…

 Let the daily output of Zee-shirts and Star-shirts be 𝑥1 and 𝑥2 units

respectively. Considering the profitability of shirts and the availability
of the tailor time, the problem can be formulated as:

 Maximize Z = 200𝑥1 + 300𝑥2

 Subject to

 2𝑥1 + 4𝑥2 ≤ 17

 3𝑥1 + 3𝑥2 ≤ 15

 𝑥1 , 𝑥2 ≥ 0 and integer

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Zero-One Model
 A special type of integer programming problem is a case
where the values of the decision variables are limited to two
logical variables, like yes or no, match or no match and so on,
which are symbolized by the values of 0 and 1. An IPP where
all the variables much equal zero or one is called a 0-1
integer programming problem.
 Examples of 0-1 IPPs
 The Assignment Problem
 The Knapsack problem
 Capital budgeting/ investment problem
 The fixed charge problem
 The facility location problem

The Assignment Problem

 The formulation of an assignment problem as an integer

programming problem is as shown below:
 Minimize 𝑍 = σ𝑛𝑖=1 σ𝑛𝑗=1 𝑐𝑖𝑗 𝑥𝑖𝑗
 Subject to:
 σ𝑛𝑗=1 𝑥𝑖𝑗 = 1 for j = 1, 2, …, n
 σ𝑛𝑖=1 𝑥𝑖𝑗 = 1 for i = 1, 2, …, n
 𝑥𝑖𝑗 = 0 or 1 for all i and j

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Assignment Problem Formulation

 Suppose we have an assignment problem where there are three

workers and an equal number of jobs, and the cost matrix is given
below:
Jobs
Workers 𝐽1 𝐽2 𝐽3
𝑊1 4 7 8
𝑊2 6 5 10
𝑊3 7 7 9

 Formulate this as an IPP

Assignment Problem Formulation

 The problem is expressible as a 0-1 IPP as follows, in which 𝑥𝑖𝑗 s represent
assignment of ith worker to the jth job.

 Objective function:

 Minimize Z = 4𝑥11 + 7𝑥12 + 8𝑥13 + 6𝑥21 + 5𝑥22 + 10𝑥23 + 7𝑥31 + 7𝑥32 + 9𝑥33

 Subject to:

 𝑥11 + 𝑥12 + 𝑥13 = 1; 𝑥21 + 𝑥22 + 𝑥23 = 1; 𝑥31 + 𝑥32 + 𝑥33 = 1

 𝑥11 + 𝑥21 + 𝑥31 = 1; 𝑥12 + 𝑥22 + 𝑥32 = 1; 𝑥13 + 𝑥23 + 𝑥33 = 1

 𝑥𝑖𝑗 ≥ 0 𝑓𝑜𝑟 𝑖 = 1,2,3; 𝑗 = 1,2,3

 𝑥𝑖𝑗 = 0, 𝑖𝑓 𝑎𝑠𝑠𝑖𝑔𝑛𝑚𝑒𝑛𝑡 𝑖𝑠 𝑛𝑜𝑡 𝑚𝑎𝑑𝑒 or 𝑥𝑖𝑗 = 1, 𝑖𝑓 𝑎𝑠𝑠𝑖𝑔𝑛𝑚𝑒𝑛𝑡 𝑖𝑠 𝑚𝑎𝑑𝑒

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The Knapsack problem

 An IPP which has only one constraint is referred to as knapsack

problem
 Example:
 Four items are considered for loading on an airplane, which has the
capacity to load up to 15 tons. The weights and values of the items are
indicated below
Item A B C D

Weight (Tons) 3 5 6 4

Per unit Value 20 25 32 22

 Which items and what quantities should be loaded on the plane so as

to maximize the value of the cargo transported?

The Knapsack problem

 Let 𝑥1 , 𝑥2 , 𝑥3 , and 𝑥4 be whether A, B, C, and D, respectively, would

be loaded on the plane. Accordingly, the problem is

 Maximize Z = 20𝑥1 + 25𝑥2 + 32𝑥3 + 22𝑥4

 Subject to:

 3𝑥1 + 5𝑥2 + 6𝑥3 + 4𝑥4 ≤ 15

 𝑥𝑖 = 0,1 (𝑖 = 1,2,3,4)

 Here, the decision variables are 0 (do not load) or 1 (load).

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Capital budgeting/ investment

problem
 Sometimes, companies face the situation of selecting one or more research and
development projects or other investment opportunities among several competing
project. The ones accepted would get the value 1 and those not accepted would
be assigned zero.
 Example: Saguna Enterprises must choose among a series of new investment
proposals. The net present value (NPV) and the capital required by each of these in
the next three years and the amount of capital available in these years are given
here:

Capital budgeting/ investment

problem – example contd…
 Further conditions for decision making are:
a. Two of the proposals A, C, E, and F must be undertaken
b. If proposals C and E are undertaken, they must be undertaken
simultaneously
c. Proposals C or D must be undertaken but not both
d. Proposal D cannot be undertaken unless proposals A and F are also
undertaken.

 Formulate this as a 0-1 integer programming problem taking

appropriate objective function.

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Formulation of the capital budgeting

problem
 Let 𝑥𝑖 (𝑖 = 1,2,3,4,5,6) be the variable representing proposal i. 𝑥𝑖 (𝑖 =
1,2,3,4,5,6) = 1, if the proposal is selected, = 0, otherwise

 Objective function:

 Maximize Z = 9800𝑥1 +12200𝑥2 +15600𝑥3 +11000𝑥4 +18000𝑥5 +220000𝑥6

 Subject to:

 5000𝑥1 +8000𝑥2 +9500𝑥3 +8000𝑥4 +9200𝑥5 +6000𝑥6 ≤ 32000

 3000𝑥1 +2500𝑥2 +5600𝑥3 +2000𝑥4 +6800𝑥5 +3000𝑥6 ≤ 15000

 4000𝑥1 +3500𝑥2 +4500𝑥3 +4000𝑥4 +2200𝑥5 +3000𝑥6 ≤ 18000

Formulation of the capital budgeting

problem contd…
 𝑥1 + 𝑥3 + 𝑥5 + 𝑥6 = 2

 𝑥3 - 𝑥5 = 0

 𝑥3 + 𝑥4 = 1

 −𝑥1 + 𝑥4 ≤ 0

 𝑥4 -𝑥6 ≤ 0

 𝑥𝑖 𝑖 = 1,2,3,4,5,6 = 0, 1

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Fixed Charge Problem

 Many problems in real life involve a combination of fixed and variable

costs. The fixed costs are incurred only if certain projects are undertaken or
a certain capacity level is exceeded.

 Example: Three machines are available to make 5,000 units which are
required for the internal use of a company as components to another
product. If the production is to be done by any one of these machines, a
set-up cost is incurred apart from the cost of making each unit on different
machines. The cost data are as follows:

 Formulate the problem to identify the best production strategy.

Fixed charge problem formulation

 Let 𝑥1 , 𝑥2 , and 𝑥3 represent the quantities to be produced on machines 1, 2,
and 3, respectively, and 𝑑1 , 𝑑2 , and 𝑑3 indicate whether a machine is to be
used (1) or not (0). The integer programming problem is:

 Minimize Z = 8000𝑑1 +5000𝑑2 +4000𝑑3 +5𝑥1 +4𝑥2 +8𝑥3

 Subject to:

 𝑥1 +𝑥2 + 𝑥3 ≥ 5000

 𝑥1 ≤ 4000𝑑1

 𝑥2 ≤ 3000𝑑2

 𝑥3 ≤ 1000𝑑3

 𝑥1 , 𝑥2 , and 𝑥3 ≥ 0; 𝑑1 , 𝑑2, and 𝑑3=0,1

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Solving a facility location problem

(example)
 Sun Oil, a petrochemical products manufacturer with worldwide sales
 Decision alternatives
Variable production,
 Set up facility in each region inventory and
transportation costs
 Consolidate requirements across region
Demand Region
Production & Transportation Cost per 1,000,000 units Fixed Low Fixed High

Supply Region N. America S. America Europe Asia Africa Cost $ Capacity Cost $ Capacity
N. America 81 92 101 130 115 6000 10 9000 20
S. America 117 77 108 98 100 4500 10 6750 20
Europe 102 105 95 119 111 6500 10 9750 20
Asia 115 125 90 59 74 4100 10 6150 20
Africa 142 100 103 105 71 4000 10 6000 20
Demand 12 8 14 16 7

Annual demand in each

region

The Capacitated Plant Location Model

 Inputs required
 n = Number of potential plant location/ capacity
 m = Number of markets or demand points
 Dj = Annual Demand from Market j
 Ki = Potential capacity of plant i
 fi = Annualized fixed cost of keeping factory i open
 cij = Cost of producing and shipping one unit from factory i to market j

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The Capacitated Plant Location Model

 Decision variables
 yi = 1 if plant i is open, 0 otherwise
 xij = Quantity shipped from factory i to market j
 The problem can be formulated as an integer programming
problem

 Subject to

Solution

 SunOil Company

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