Introduction to Management Science

8th Edition
by
Bernard W. Taylor III

Chapter 5
Integer Programming

Chapter 5 - Integer Programming

Chapter Topics

Integer Programming (IP) Models

Integer Programming Graphical Solution
Computer Solution of Integer Programming Problems With
Excel and QM for Windows

Chapter 5 - Integer Programming

Integer Programming Models
Types of Models
Maximize Z = 10x1 + 15x2
subject to: 8x1 + 4x2 40
15x1 + 30x2 200
Total Integer Model: All decision variables required to
have integer solution values (e.g., x1, x2 0 and integer).
0-1 Integer Model: All decision variables required to have
integer values of zero or one (e.g., x1, x2 = 0 or 1).
Mixed Integer Model: Some of the decision variables (but
not all) required to have integer values (e.g., x1 0 and
integer, x2 0 ).

Chapter 5 - Integer Programming

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, 200 sq. ft. floor space.
Machine purchase prices and space requirements:

Required Floor
Machine Purchase
Space
Price
(sq. ft.)
Press 15 $8,000

Lathe 30 4,000

Chapter 5 - Integer Programming

Total Integer Model (2 of 2)

Integer Programming Model:

Define x1 = number of presses
x2 = number of lathes

Maximize Z = $100x1 + $150x2

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

Chapter 5 - Integer Programming

0 - 1 Integer Model (1 of 2)

Recreation facilities selection to maximize daily usage by

residents.
Resource constraints: $120,000 budget; 12 acres of land.
Selection constraint: either swimming pool or tennis center
(not both).
Data:
Land
Recreation Expected Usage
Cost ($) Requirement
Facility (people/day)
(acres)
Swimming pool 300 35,000 4
Tennis Center 90 10,000 2
Athletic field 400 25,000 7
Gymnasium 150 90,000 3

Chapter 5 - Integer Programming

0 - 1 Integer Model (2 of 2)

Integer Programming Model:

Define: x1 = construction of a swimming pool
x2 = construction of a tennis center
x3 = construction of an athletic field
x4 = construction of a gymnasium
Maximize Z = 300x1 + 90x2 + 400x3 + 150x
subject to:
$35,000x1 + 10,000x2 + 25,000x3 + 90,000x4 $120,000
4x1 + 2x2 + 7x3 + 3x3 12 acres
x1 + x2 1 facility
x1, x2, x3, x4 = 0 or 1
Chapter 5 - Integer Programming
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.

Chapter 5 - Integer Programming

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
Chapter 5 - Integer Programming
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.

Chapter 5 - Integer Programming

Integer Programming Example
Graphical Solution of Maximization 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

Chapter 5 - Integer Programming

Branch and Bound Method

Traditional approach to solving integer programming

problems.
Based on principle that total set of feasible solutions can be
partitioned into smaller subsets of solutions.
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 CD-ROM Module C Integer Programming: the
Branch and Bound Method for detailed description of
method.

Chapter 5 - Integer Programming

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 + 3x3 12 acres
x1 + x2 1 facility
x1, x2, x3, x4 = 0 or 1

Chapter 5 - Integer Programming

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

Exhibit 5.2

Chapter 5 - Integer Programming

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

Exhibit 5.4

Chapter 5 - Integer Programming

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

Exhibit 5.3

Chapter 5 - Integer Programming

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

Exhibit 5.5
Chapter 5 - Integer Programming
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 + 3x3 12 acres
x1 + x2 1 facility
x1, x2, x3, x4 = 0 or 1

Chapter 5 - Integer Programming

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

Exhibit 5.6

Chapter 5 - Integer Programming

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

Exhibit 5.7

Chapter 5 - Integer Programming

0 1 Integer Programming Modeling Examples
Capital Budgeting Example (1 of 3)
University bookstore expansion project.
Not enough space available for both a computer department
and a clothing department.
Data:

NPV Return Project Costs per Year ($1000)

Project
($1000) 1 2 3

1. Website 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

Chapter 5 - Integer Programming

0 1 Integer Programming Modeling Examples
Capital Budgeting Example (2 of 3)
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
Chapter 5 - Integer Programming
0 1 Integer Programming Modeling Examples
Capital Budgeting Example (2 of 3)
What additional constraint/s are needed for the following:
a) If the website is chosen, then the ATMs must be selected?

b) The clothing department can be selected only if the

computer department is chosen.

c) If both the clothing and computer departments are chosen,

then the warehouse must be built?

Chapter 5 - Integer Programming

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
Data: Plant Capacity
(tons,1000s)
A 12
Farms Annual Fixed Projected Annual B 10
Costs Harvest (tons, 1000s) C 14
($1000)
1 405 11.2
2 390 10.5 Plant
3 450 12.8 Farm A B C
4 368 9.3 1 18 15 12
5 520 10.8 2 13 10 17
6 465 9.6 3 16 14 18
4 19 15 16
5 17 19 12
6 14 16 12

Chapter 5 - Integer Programming

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 (tons, 1000s) shipped from farm i, i = 1,2,3,4,5,6 to plant j, j
= A,B,C.
Minimize Z = 18x1A + 15x1B + 12x1C + 13x2A + 10x2B + 17x2C + 16x3A +
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 + x3A + x4b + x5B + x6B = 10
x1B + x2C + x3C+ x4C + x5B + x6C = 14
xij = Chapter
0 5 -yInteger
i = 0 or 1Programming
0 1 Integer Programming Modeling Examples
Fixed Charge and Facility Example (3 of 4)

Exhibit 5.18

Chapter 5 - Integer Programming

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

Exhibit 5.19

Chapter 5 - Integer Programming

0 1 Integer Programming Modeling Examples
Set Covering Example (1 of 4)
APS wants to construct the minimum set of new hubs in the
following 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, 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
Chapter 5 - Integer Programming
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 = 1if 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 + 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
Chapter 5 - Integer
St Louis: x +Programming
x +x 1 x = 0 or 1
0 1 Integer Programming Modeling Examples
Set Covering Example (3 of 4)

Exhibit 5.20

Chapter 5 - Integer Programming

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

Exhibit 5.21

Chapter 5 - Integer Programming

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?

Chapter 5 - Integer Programming

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

Chapter 5 - Integer Programming

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

Chapter 5 - Integer Programming