IE 222:

Industrial Operation Analysis -1-

Chapter 4:
Linear Programming Modeling and
Selected Engineering and Industrial
Applications
Course Instructors:
Dr. Anis Gharbi (Associate Professor)
Dr. Mohamed Labidi (Assistant Professor)

START HERE
2015
Index
Inde Objective
x s
introductio
Content
n
Homewor
Quiz
k
Summar
y
Introduction

Part 1: Simple Form – Single

Index
Part 2: Simple Form – Double
Index
Modeling Part 3: Compact Form – Single
on Index
Applicati Part 4: Compact Form – Double
Index
ons
Part 5: Binary Variables

Part 6: Different Types of

Variables
Objectives

 To introduce how to formulate the problem into mathematical model

 To introduce how to make a compact mathematical model
PART 1: Simple Form –
Single Index
• Toy Production
• Publicity
• Banking
• Alloy
Toy Production

 How many units to produce from each product type in order to maximize the
profit?

Man
Product Machine Profit
Power
Type A 3h 1h 25 SR
Type B 2h 4h 15 SR
Availabilit
70 h 110 h
y
Toy Production: Formulation

 Decision Variables
  : number of units of product type A
  : number of units of product type B

 Objective Function:
 Maximize Total Profit

𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 :25 𝑥 𝐴+15 𝑥 𝐵

Toy Production: Formulation

 Constraints
 Man-Power availability
3 𝑥 𝐴+ 2 𝑥 𝐵 ≤ 70

 Machine availability
𝑥 𝐴 + 4 𝑥 𝐵 ≤ 110

 Integer variables
𝑥 𝐴 , 𝑥 𝐵 ∈ 𝐼𝑁
Toy Production: Solution

 The optimal solution of the LP is:

 ,
 , and

 The optimal solution of the toy production problem is to produce 22 units of

toy A and 2 units of toy B.
 The optimal profit is 580 SR.
Publicity

 The small company, Pronuevo, launches a new product into a regional market
and wishes to have a publicity campaign using different media
 Total budget of $ 250,000
 Impact of the publicity campaign to reach at least 100,000 people
Publicity

 Which media should be chosen and in which proportions to obtain a maximum

index of perception quality?

People
Unit
# Media type potentially Maximum use quality
cost
reached
Free weekly
1 12,000 1,500 4 weeks 3
newspaper
2 Monthly magazine 1,500 8,000 2 months 7
3 Weekly magazine 2,000 12,000 8 weeks 8
4 Radio spot 6,000 9,000 60 broadcasts 2
5 Billboard 4x3 m 3,000 24,000 4 boards 6
6 TV spot 9,000 51,000 8 broadcasts 9
Publicity: Formulation

 Decision variables:
 : number of use of newspaper
 : number of use of monthly magazine
 : number of use of weekly magazine
 : number of use of radio spot
 : number of use of billboard
 : number of use of TV spot
Publicity Campaign: Formulation
 Objective Function:
 Maximize the index of perception quality

𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 :𝑞𝑢𝑎𝑙𝑖𝑡𝑦 1 𝑥1 +…+𝑞𝑢𝑎𝑙𝑖𝑡𝑦 6 𝑥 6

𝑚𝑎𝑥𝑖𝑚𝑖𝑧𝑒 :3 𝑥1 +7 𝑥 2+8 𝑥 3 +2 𝑥 4 +6 𝑥 5 +9 𝑥 6
 Constraints:
 Budget

𝑐𝑜𝑠𝑡 1 𝑥 1+ …+𝑐𝑜𝑠𝑡 6 𝑥 6 ≤ 𝑇𝑜𝑡𝑎𝑙𝐵𝑢𝑑𝑔𝑒𝑡

1.5 𝑥 1 +8 𝑥 2+12 𝑥3 +9 𝑥 4 +24 𝑥 5 +51 𝑥 6 ≤ 250
Publicity Campaign: Formulation
 Constraints:
4
 Maximum use
2
8
60
 Audience Target 4
8
𝑟𝑒𝑎𝑐h1 𝑥1 +…+ 𝑟𝑒𝑎𝑐h6 𝑥 6 ≥ 𝐴𝑢𝑑𝑖𝑒𝑛𝑐𝑒𝑇𝑎𝑟𝑔𝑒𝑡

12 𝑥 1+1.5 𝑥 2+ 2Integrality
𝑥 3 +6constraints:
𝑥 4 +3 𝑥5 +9 𝑥 6 ≥100

integers
Publicity: Solution

 Quality index: 122 units

 The budget is fully used
 103,000 people are reached Media type Number of uses
Free weekly
4
newspaper
Monthly magazine 2
Weekly magazine 8
Radio spot 4
Billboard 4x3 m 4
TV spot 0
Banking

 A bank is in the process to allocate 12 million SR to different types of loans.

Type of loan Profit rate Bad debt ratio
1 Personal 0.14 0.10
2 Car 0.13 0.07
3 Home 0.12 0.03
4 Farm 0.125 0.05
5 Commercial 0.10 0.03

 Competition with other financial institutions suggests allocating at least 40%

of the funds to farm & commercial loans.
Banking
Type of loan Profit rate Bad debt ratio
1 Personal 0.14 0.10
2 Car 0.13 0.07
3 Home 0.12 0.03
4 Farm 0.125 0.05
5 Commercial 0.10 0.03

 To assist in the housing industry, the home loans must be at least 50% of the
personal, car and home loans.
 The bank management requires that the overall bad ratio debt not to exceed 4%.
 The bank wants to determine the best loan policy that will maximize its profit
rate.
Banking: Formulation

 Decision variables:
 : amount of personal loans (in million SR)
 : amount of car loans (in million SR)
 : amount of home loans (in million SR)
 : amount of farm loans (in million SR)
 : amount of commercial loans (in million SR)
Banking: Formulation

 Objective function:

𝑀𝑎𝑥𝑍=0.14(0.90)𝑥1+0.13(0.93)𝑥2+0.12(0.97)𝑥3+0.125(0.95)𝑥4+0.1(0.98)𝑥5−0.1𝑥1−0. 7𝑥2−0. 3𝑥3−0. 5𝑥4−0. 2𝑥5

 Constraints:
 The total funds shall not exceed 12 million SR:

𝑥1 + 𝑥2 + 𝑥 3+ 𝑥 4 + 𝑥 5 ≤ 12
Banking: Formulation (cont.)

 Farm and commercial loan constraint:

𝑥 4 +𝑥 5 ≥ 0.4 (𝑥 1 +𝑥 2 + 𝑥3 + 𝑥 4 + 𝑥5 )

 Home loans constraint: 𝑥3 ≥ 0.5 (𝑥 1+ 𝑥 2 + 𝑥3 )

 Limit on bad debts rule

0.1𝑥1 +0.07𝑥2+0.03𝑥3 +0.05𝑥4 +0.03𝑥5 /𝑥1 +𝑥2 +𝑥3 +𝑥4 +𝑥5 ¿≤0.04
(NONLINEAR)
 or equivalently,
0.06 𝑥 1+ 0.03 𝑥 2 − 0.01 𝑥 3 +0.01 𝑥 4 −0.02 𝑥5 ≤ 0.04
Banking: Solution

 The optimal solution of the LP is:

 ,
 ,
 , and

 The optimal solution consists in allocating 7.2 M to the home type and 4.8 M
to commercial type
 The optimal profit is 0.996 M SAR
Alloy

 The company Steel has received an order for 500 tones

 This steel must have the following characteristics (‘grades’)
Chemical Minimum Maximum
element grade grade
Carbon (C) 2 3
Copper (Cu) 0.4 0.6
Manganese
1.2 1.65
(Mn)
 The company has seven different raw materials in stock that may be used for
the production of this steel.
Alloy

 The grades, available amounts and prices for all raw materials are the
following:
Raw material C% Cu % Mn % Availability Cost in
in t $/t
Iron alloy 1 2.5 0 1.3 400 200
Iron alloy 2 3 0 0.8 300 250
Iron alloy 3 0 0.3 0 600 150
Copper alloy 1 0 90 0 500 220
Copper alloy 2 0 96 4 200 240
Aluminum alloy 0 0.4 1.2 300 200
1
Aluminum alloy 0 0.6 0 250 165
2
Alloy

 Determine the composition of the steel that minimizes the production cost!
Alloy: Formulation

 Decision Variable
 : the use of raw material 1
 : the use of raw material 2
 : the use of raw material 3
 : the use of raw material 4
 : the use of raw material 5
 : the use of raw material 6
 : the use of raw material 7
Alloy: Formulation

 Objective Function
 Minimize the production cost:
𝑀 𝑖𝑛 𝑍 :𝑐𝑜𝑠𝑡 1 𝑥1 +…+𝑐𝑜𝑠𝑡 7 𝑥 7

 Constraints:
 Demand Satisfaction
𝑥1 +… + 𝑥7 ≥ 𝑑𝑒𝑚𝑎𝑛𝑑
Alloy: Formulation

 Constraint:
 Minimum Requirement

 Maximum Requirement
Alloy: Formulation

 Constraint:
 Availability of raw material

 Non negativity

𝑥1 , … , 𝑥 7 ≥ 0
Alloy: Solution

 The required 500 tonnes of steel are produced with:

 400 tonnes of iron alloy 1,
 39.776 tonnes of iron alloy 3,
 2.761 tonnes of copper alloy 2, and
 57.462 tonnes of aluminum alloy 1.
 The percentages of
 Carbon = 2%,
 Copper = 0.6%, and
 Manganese 1.2%
 The total cost of production is $ 98,121.60
HOMEWORK (Part 1)

 Source: Xpress Book

 Barge (9.2)
 Portfolio selection (13.3)
 Formulate the problem using simple form
 Code it using Lingo
PART 2: Simple Form –
Double Index
• Transportation
• Animal Food
Transportation

Supply Sources Destination Demand

sA 4
5
8 D1

3
B 5
4
7
9 D2
6
2 C 8

Unit transportation
cost
Transportation

 All the demands must be satisfied.

 All the supplies must be delivered.
 How many units to transport from each source to each destination in order to
minimize the total transportation cost?
Transportation: Formulation

 Decision Variable:
 : number of units transported from Source to Destination

 Objective function

𝑀𝑖𝑛𝑍=5𝑥1𝐴+3𝑥1𝐵+6𝑥1𝐶+4𝑥2𝐴+7𝑥2𝐵+2𝑥2𝐶
Transportation: Formulation

 Constraints
 (Supply of )
 (Supply of )
 (Demand of A)
 (Demand of B)
 (Demand of C)
Transportation: Solution

 Optimal solution
Animal Food

 The company CowFood produces food for farm animals that is sold in two
forms:
 Powder and granules
 The raw materials used for the production of the food are:
 oat, maize and molasses
Animal Food

 The raw materials (with the exception of molasses) first need to be ground,
and then all raw materials that will form a product are blended. In the last
step of the production process the product mix is either transformed to
granules or sieved to obtain food in the form of powder.
Animal Food

 Every food product needs to fulfill certain nutritional requirements.

 The following table shows the percentages of proteins, lipids and fibers
contained in the raw materials and the required percentages in the final
products:

Raw material Protein Lipids Fiber

s
Oat 13.6 7.1 7
Maize 4.1 2.4 3.7
Molasses 5 0.3 25
Required contents  9.5 2 6
Animal Food

 The following table shows the availability of raw materials per day and the
respective prices.
Raw material Available Cost in $/kg
amount in kg
Oat 11,900 0.13
Maize 23,500 0.17
Molasses 750 0.12
Animal Food

 The cost of the different production steps are given in the following table.
Grinding Blending Granulatin Sieving
g
0.25 0.05 0.42 0.17
 A daily demand of:
 nine tones of granules
 twelve tones of powder
 Which quantities of raw materials are required and how should they be
blended to minimize the total cost?
Animal Food: Formulation

 Constants
 The cost per kg of each raw material

 The cost of each production process (grinding, blending, granulating, sieving)

 ,…,
 The required content of each nutritional component
Animal Food: Formulation

 Constants
 The content of each nutrition in each raw material

 The maximum available quantity of raw material

 The daily demand of each food product

Animal Food: Formulation

 Decision Variables
 The quantity of each raw material to be used for the production of each food

 The amount of each food type to be produced

Animal Food: Formulation

 Objective Function
 Minimize the total cost:

 Raw Material Cost 𝐶𝑂𝑆𝑇 1 𝑢𝑠𝑒1 1 +…+𝐶𝑂𝑆𝑇 3 𝑢𝑠𝑒32

Animal Food: Formulation

 Grinding Cost
𝑃𝐶𝑂𝑆𝑇 1 𝑢𝑠𝑒1 1+…+𝑃𝐶𝑂𝑆𝑇 1 𝑢𝑠𝑒22

 Blending Cost
𝑃𝐶𝑂𝑆𝑇 2 𝑢𝑠𝑒1 1+…+𝑃𝐶𝑂𝑆𝑇 2 𝑢𝑠𝑒32

 Granulating Cost
𝑃𝐶𝑂𝑆𝑇 3 𝑢𝑠𝑒1 1 +𝑃𝐶𝑂𝑆𝑇 3 𝑢𝑠𝑒21 +𝑃𝐶𝑂𝑆𝑇 3 𝑢𝑠𝑒 31

 Sieving Cost
𝑃𝐶𝑂𝑆𝑇 4 𝑢𝑠𝑒1 2+𝑃𝐶𝑂𝑆𝑇 4 𝑢𝑠𝑒 22+𝑃𝐶𝑂𝑆𝑇 4 𝑢𝑠𝑒32
Animal Food: Formulation

 Constraints:
 The produced quantity of every food type corresponds to the sum of the raw
material used for its production
𝑢𝑠𝑒1 1+…+ 𝑢𝑠𝑒31=𝑝𝑟𝑜𝑑𝑢𝑐𝑒 1
𝑢𝑠𝑒1 2+ …+𝑢𝑠𝑒32=𝑝𝑟𝑜𝑑𝑢𝑐𝑒 2
Animal Food: Formulation

 Constraints:
 The required content of nutritional components
 Component 1 & 2

 Component 3
Animal Food: Formulation

 Constraint:
 The availability limit of raw material

 Demand satisfaction
Animal Food: Formulation

 Constraints:
 Non negativity
Animal Food: Solution

 The minimum cost = $ 15,086.80

 The composition of the food products is:
Food Protei
Oat Maize Molasses Lipid Fiber
type n
Granul 5,098.5 3,719.5
181.91 9.50% 5.02% 6.00%
e 6 3
Powde 6,798.0 4,959.3
242.55 9.50% 5.02% 6.00%
r 7 7
HOMEWORK (Part 2)

 Source: Xpress Book

 Mode of transport (10.2)
 Choice of Loan (13.1)
 Formulate the problem using simple form
 Code it using Lingo
PART 3: Compact Form
– Single Index
• Toy Production
• Publicity
• Alloy
Toy Production

 How many units to produce from each product type in order to maximize the
profit?
Man
Product Machine Profit
Power
Type A 3h 1h 25 SR
Type B 2h 4h 15 SR
Availabilit
70 h 110 h
y
Toy Production: Formulation

 Set:
 PRODUCTS: set of product to be produced
 Constants
 : the profit for product m
 : the machine hour needed to produce a product m
 : the man power needed to produce a product m
 : the maximum machine hour availablity
 : the man power availability
Toy Production: Formulation

 Decision Variables:
  : number of units of product type m

 Objective Function:
 Maximize the total profit
❑
𝑀𝑎𝑥 𝑃= ∑ 𝑃𝑅𝑂𝐹𝐼𝑇 𝑚 𝑥 𝑚
𝑚∈𝑃 𝑅𝑂𝐷𝑈𝐶𝑇𝑆
Toy Production: Formulation

 Constraints ❑
 Machine availability
∑ 𝑀𝐴𝐶𝐻𝐼𝑁𝐸 𝑚 𝑥 𝑚 ≤ 𝑀𝑎𝑐h𝑖𝑛𝑒𝐴𝑣𝑎𝑖𝑙
𝑚∈𝑃𝑅𝑂𝐷𝑈𝐶𝑇𝑆

❑
∑
 Man Power Availability
𝐿𝐴𝐵𝑂𝑅 𝑚 𝑥 𝑚 ≤ 𝑀𝑎𝑛𝐴𝑣𝑎𝑖𝑙
𝑚∈𝑃𝑅𝑂𝐷𝑈𝐶𝑇𝑆
 Integer variables
∀ 𝑚∈ 𝑃𝑅𝑂𝐷𝑈𝐶𝑇 : 𝑥 𝑚 ∈ 𝐼𝑁
Toy Production: Solution

 The optimal solution of the LP is:

 ,
 , and

 The optimal solution of the toy production problem is to produce 22 units of

toy A and 2 units of toy B.
 The optimal profit is 580 SR.
Publicity

 The small company, Pronuevo, launches a new product into a regional market
and wishes to have a publicity campaign using different media
 Total budget of $ 250,000
 Impact of the publicity campaign to reach at least 100,000 people
Publicity

 Which media should be chosen and in which proportions to obtain a maximum

index of perception quality?

People
Unit
# Media type potentially Maximum use quality
cost
reached
Free weekly
1 12,000 1,500 4 weeks 3
newspaper
2 Monthly magazine 1,500 8,000 2 months 7
3 Weekly magazine 2,000 12,000 8 weeks 8
4 Radio spot 6,000 9,000 60 broadcasts 2
5 Billboard 4x3 m 3,000 24,000 4 boards 6
6 TV spot 9,000 51,000 8 broadcasts 9
Publicity: Formulation

 Set:
 MEDIA: the set of media that may be used in this campaign
 Constants
 : the number of people potentially reached using medium m
 : the unit cost of using a medium m
 : the maximum number of uses of medium m
 : the quality index for medium m used
 : maximum budget
 : audience target
Publicity: Formulation

 Decision variables:
 : the number of media used

 Objective Function:
 Maximize the index of perception quality

❑
∑ 𝑄𝑈𝐴𝐿𝐼𝑇𝑌 𝑚 𝑥 𝑚
𝑚∈𝑀𝐸𝐷𝐼𝐴
Publicity: Formulation

 Constraints:
❑
∑
 Budget
𝐶𝑂𝑆𝑇 𝑚 𝑥𝑚 ≤𝑇𝑜𝑡𝑎𝑙𝐵𝑢𝑑𝑔𝑒𝑡
𝑚∈𝑀𝐸𝐷𝐼𝐴

Maximum use
∀ 𝑚∈ 𝑀𝐸𝐷𝐼𝐴: 𝑥 𝑚 ≤ 𝑀𝐴𝑋𝑈𝑆𝐸 𝑚

Publicity: Formulation

 Constraints:
 Audience Target ❑
∑ 𝑅𝐸𝐴𝐶𝐻 𝑚 𝑥 𝑚 ≥ 𝑇𝑎𝑟𝑔𝑒𝑡
𝑚∈𝑀𝐸𝐷𝐼𝐴

 Integer constraint
∀ 𝑚∈ 𝑀𝐸𝐷𝐼𝐴 : 𝑥 𝑚 ∈ 𝐼𝑁
Publicity: Solution

 Quality index: 122 units

 The budget is fully used
 103,000 people are reached
Media type Number of uses
Free weekly newspaper 4
Monthly magazine 2
Weekly magazine 8
Radio spot 4
Billboard 4x3 m 4
TV spot 0
Alloy

 The company Steel has received an order for 500 tones

 This steel must have the following characteristics (‘grades’) Minimum Maximum
Chemical element
grade grade
Carbon (C) 2 3
Copper (Cu) 0.4 0.6
Manganese (Mn) 1.2 1.65

 The company has seven different raw materials in stock that may be used for
the production of this steel.
Alloy

 The grades, available amounts and prices for all raw materials are the
following:
Raw material C% Cu % Mn % Availability Cost in
in t $/t
Iron alloy 1 2.5 0 1.3 400 200
Iron alloy 2 3 0 0.8 300 250
Iron alloy 3 0 0.3 0 600 150
Copper alloy 1 0 90 0 500 220
Copper alloy 2 0 96 4 200 240
Aluminum alloy 0 0.4 1.2 300 200
1
Aluminum alloy 0 0.6 0 250 165
2
Alloy

 Determine the composition of the steel that minimizes the production cost!
Alloy: Formulation

 Sets
 RAW: set of raw material r
 COMP: set of chemical element c
 Constants
 : the unit cost of using a raw material
 : the chemical element c on raw material r
 the minimum chemical element c needed
 the maximum chemical element c needed
 : the raw material availability
 : the customer demand
Alloy: Formulation

 Decision Variables
 : the use of raw material r

 Objective Function
 Minimize the production cost:
❑
𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒= ∑ 𝐶𝑂𝑆𝑇 𝑟 𝑢𝑠𝑒𝑟
𝑟 ∈ 𝑅𝐴𝑊
Alloy: Formulation

 Constraints:
❑
∑
 Demand Satisfaction
𝑢𝑠𝑒𝑟 ≥ 𝑑𝑒𝑚𝑎𝑛𝑑
𝑟 ∈ 𝑅𝐴𝑊

 Minimum Requirement
❑ ❑
∀ 𝑐∈𝐶𝑂𝑀𝑃 : ∑ 𝑃 𝑐𝑟 𝑢𝑠𝑒𝑟 ≥𝑃𝑀𝑖𝑛𝑐 ∑ 𝑢𝑠𝑒𝑟
𝑟 ∈𝑅𝐴𝑊 𝑟 ∈𝑅𝐴𝑊
Alloy: Formulation

 Constraints:
 Minimum Requirement ❑ ❑
∀ 𝑐∈𝐶𝑂𝑀𝑃 : ∑ 𝑃 𝑐𝑟 𝑢𝑠𝑒𝑟 ≤𝑃𝑀𝑎𝑥 𝑐 ∑ 𝑢𝑠𝑒𝑟
𝑟 ∈𝑅𝐴𝑊 𝑟 ∈𝑅𝐴𝑊

 Raw material Availabilty

∀ 𝑟 ∈ 𝑅𝐴𝑊 :𝑥 𝑟 ≤ 𝐴𝑉𝐴𝐼𝐿 𝑟
Alloy: Formulation

 Constraints:
 Non negativity
∀ 𝑟 ∈ 𝑅𝐴𝑊 : 𝑥 𝑟 ≥ 0
Alloy: Solution

 The total cost of production is $ 98,121.60

 The required 500 tones of steel are produced with:
 400 tones of iron alloy 1,
 39.776 tones of iron alloy 3,
 2.761 tones of copper alloy 2, and
 57.462 tones of aluminum alloy 1
 The percentages of
 Carbon = 2%,
 Copper = 0.6%, and
 Manganese 1.2%
HOMEWORK (Part 3)

 Source: Xpress Book

 Barge (9.2)
 Portfolio selection (13.3)
 Formulate the problem using compact form
 Code it using Lingo
PART 4: Compact Form
– Double Index
• Transportation
• Animal Food
Transportation
Sources Destinations
Supply Demand
A 4
8 5
D1

3 5
B
4
9 7
D2
6 8
2 C

Unit transportation cost

Transportation

 All the demands must be satisfied.

 All the supplies must be delivered.
 How many units to transport from each source to each destination in order to
minimize the total transportation cost?
Transportation: Formulation

 Sets:
 SOURCE: the origin i of transportation
 DESTINATION: the destination j of transportation
 Constants:
 : the supply of origin i
 : the demand of destination j
Transportation: Formulation

 Decision Variables:
 : number of units transported from Source to Destination

 Objective function

❑ ❑
𝑀𝑖𝑛𝑖𝑚𝑖𝑧𝑒= ∑ ∑ 𝑥 𝑖𝑗
𝑖∈𝑆𝑂𝑈𝑅𝐶𝐸 𝑗∈ 𝐷𝐸𝑆𝑇𝐼𝑁𝐴𝑇𝐼𝑂𝑁
Transportation: Formulation

 Constraints
❑
 Supply Constraint
∀ 𝑖∈𝑆𝑂𝑈𝑅𝐶𝐸 : ∑ 𝑥𝑖𝑗 =𝑆𝑈𝑃𝑃𝐿𝑌 𝑖
𝑗 ∈𝐷𝐸𝑆𝑇𝐼𝑁𝐴𝑇𝐼𝑂𝑁

❑
∑
 Demand Constraint
∀ 𝑗 ∈𝐷𝐸𝑆𝑇𝐼𝑁𝐴𝑇𝐼𝑂𝑁 : 𝑥𝑖𝑗 =𝐷𝐸𝑀𝐴𝑁𝐷 𝑗
𝑖∈𝑆𝑂𝑈𝑅𝐶𝐸

 Integer variables
∀ 𝑖∈𝑆𝑂𝑈𝑅𝐶𝐸 , ∀ 𝑗∈ 𝐷𝐸𝑆𝑇𝐼𝑁𝐴𝑇𝐼𝑂𝑁 : 𝑥𝑖𝑗 ∈ 𝐼𝑁
Transportation: Solution

 Optimal solution
Animal Food

 The company CowFood produces food for farm animals that is sold in two
forms:
 Powder and granules
 The raw materials used for the production of the food are:
 oat, maize and molasses
Animal Food

 The raw materials (with the exception of molasses) first need to be ground,
and then all raw materials that will form a product are blended. In the last
step of the production process the product mix is either transformed to
granules or sieved to obtain food in the form of powder.
Animal Food

 Every food product needs to fulfill certain nutritional requirements.

 The following table shows the percentages of proteins, lipids and fibers
contained in the raw materials and the required percentages in the final
products:

Raw material Protein Lipids Fiber

s
Oat 13.6 7.1 7
Maize 4.1 2.4 3.7
Molasses 5 0.3 25
Required contents  9.5 2 6
Animal Food

 The following table shows the availability of raw materials per day and the
respective prices.
Raw material Available Cost in $/kg
amount in kg
Oat 11,900 0.13
Maize 23,500 0.17
Molasses 750 0.12
Animal Food

 The cost of the different production steps are given in the following table.

Grinding Blending Granulatin Sieving

g
0.25 0.05 0.42 0.17
 A daily demand of:
 nine tones of granules
 twelve tones of powder
 Which quantities of raw materials are required and how should they be
blended to minimize the total cost?
Animal Food: Formulation

 Sets
 FOOD: the set of food product types f that are produced
 RAW: set of raw material r
 COMP: the set of nutritional components c
 Constants
 : the cost of raw material r
 : the cost of production process p
 : the required content of nutritional component c
 the content of c in raw material r
 : the maximum available quantity of raw material
 : the daily demand of food product f
Animal Food: Formulation

 Decision Variables
 : the quantity of raw material r used for the production of food type f
 : the amount of food f produced
Animal Food: Formulation

 Objective Function
 Minimize the production cost:
❑❑ ❑ ❑❑ ❑ ❑
𝑀𝑖𝑛𝑚𝑖𝑧𝑒= ∑ ∑ 𝐶𝑂𝑆𝑇𝑟.𝑢𝑠𝑒𝑟f+ ∑ ∑ ❑P𝐶𝑂𝑆𝑇𝑔𝑟∈𝑑𝑖𝑛𝑔.𝑢𝑠𝑒𝑟f+ ∑ ∑ P𝐶𝑂𝑆𝑇𝑏𝑙𝑒𝑛𝑑𝑖𝑛𝑔.𝑢𝑠𝑒𝑟f+ ∑ P𝐶𝑂𝑆𝑇𝑔𝑟𝑎𝑛𝑢𝑙𝑎𝑡𝑖𝑛𝑔.𝑢𝑠𝑒𝑟1+ ∑ P𝐶𝑂𝑆𝑇𝑠𝑖𝑒𝑣𝑖𝑛𝑔.𝑢𝑠𝑒𝑟2
𝑟∈𝑅𝐴𝑊 f∈FO D 𝑟∈𝑅𝐴𝑊 f∈FO D¿ 𝑟∈𝑅𝐴𝑊 f∈FO D 𝑟∈𝑅𝐴𝑊 𝑟 ∈ 𝑅𝐴 𝑊
𝑟≠𝑚𝑜𝑙𝑎𝑠 𝑒𝑠 ¿
Animal Food: Formulation

 Constraints:
 The produced quantity of every food type corresponds to the sum of the raw
❑
∑
material used for its production
∀ 𝑓 ∈ 𝐹𝑂𝑂𝐷: 𝑢𝑠𝑒 𝑟𝑓 =𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑓
𝑟 ∈𝑅𝐴𝑊

 The required content of nutritional components

❑
∀ 𝑓 ∈ 𝐹𝑂𝑂𝐷,𝑐∈1..2: ∑ 𝑃 𝑟𝑐 𝑢𝑠𝑒𝑟 f ≥ 𝑅𝐸𝑄𝑐 .𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑓
𝑟∈ 𝑅𝐴𝑊
❑
∀ 𝑓 ∈ 𝐹𝑂𝑂𝐷: ∑ 𝑃𝑟 3 𝑢𝑠𝑒𝑟 f ≤ 𝑅𝐸𝑄3 .𝑝𝑟𝑜𝑑𝑢𝑐 𝑒 𝑓
𝑟 ∈𝑅𝐴𝑊
Animal Food: Formulation

 Constraints:
 The availability limit of raw material ❑
∀ 𝑟 ∈ 𝑅𝐴𝑊 : ∑ 𝑥 𝑟𝑓 ≤ 𝐴𝑉𝐴𝐼𝐿𝑟
𝑓 ∈ 𝐹𝑂𝑂𝐷

 Demand satisfaction
∀ 𝑓 ∈ 𝐹𝑂𝑂𝐷 :𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑓 ≥ 𝐷𝐸𝑀 𝑟
 Non negativity
Animal Food: Solution

 The minimum cost = $ 15,086.80

 The composition of the food products is:
Food Protei
Oat Maize Molasses Lipid Fiber
type n
Granul 5,098.5 3,719.5
181.91 9.50% 5.02% 6.00%
e 6 3
Powde 6,798.0 4,959.3
242.55 9.50% 5.02% 6.00%
r 7 7
HOMEWORK (Part 4)

 Source: Xpress Book

 Mode of transport (10.2)
 Choice of Loan (13.1)
 Formulate the problem using compact form
 Code it using Lingo
Part 5: Binary Variables

• Telecommunication
• Flight connection at hub
Telecommunication

 We have to place transmitters on the sites A,B,…,G.

 Each transmitter covers the two adjacent zones (e.g. if a transmitter is
placed on site D, then it will cover both zones 3 and 4).
Telecommunication

 Each Zone must be covered with at least one transmitter.

 Zone 4 must be covered by at least 2 transmitters.
 What is the minimum number of transmitters to be placed?
 Where should they be placed?
Telecommunication: Formulation

 Decision variables

 Objective function

𝑀𝑖𝑛 𝑍 =𝑥 𝐴 + 𝑥 𝐵 + 𝑥𝐶 + 𝑥 𝐷 + 𝑥 𝐸 + 𝑥 𝐹 + 𝑥 𝐺
Telecommunication: Formulation

 Constraints
 Demand Satisfaction for each zone (zone 1)
(zone 2)
(zone 3)
(zone 4)
(zone 5)

 Binary variables
𝑥𝑖 ∈{0,1 }  for   all   𝑖= 𝐴, 𝐵 , … , 𝐺
Telecommunication: Solution

 The optimal solution of the LP is:

 ,
 ,

 The optimal solution of the telecommunication problem is to place one

transmitter at each of the sites A, D, and G.
Flight connection at hub

 Six Fokker 100 airplanes of this airline from Bordeaux, Clermont-Ferrand,

Marseille, Nantes, Nice, and Toulouse are landing between 11 am and 12:30
pm.
 These aircraft leave for Berlin, Bern, Brussels, London, Rome, and Vienna
between 12:30 pm and 13:30 pm.
Flight connection at hub

 The numbers of passengers transferring from the incoming flights to one of

the outgoing flights are listed in the following:

    Destinations
    Berlin Bern Brussels London Rome Vienna
Bordeau
35 12 16 38 5 2
x
Clermon
t- 25 8 9 24 6 8
Ferrand
Origins Marseill
12 8 11 27 3 2
e
Nantes 38 15 14 30 2 9
Nice – 9 8 25 10 5
Toulous
– – – 14 6 7
e
Flight connection at hub

 For example, if the flight incoming from Bordeaux continues on to Berlin, 35

passengers and their luggage may stay on board during the stop at Paris.
 The flight from Nice arrives too late to be re-used on the connection to
Berlin, the same is true for the flight from Toulouse that cannot be used for
the destinations Berlin, Bern and Brussels (the corresponding entries in the
table are marked with ‘–’).
 How should the arriving planes be re-used for the departing flights to
minimize the number of passengers who have to change planes at Roissy?
Flight connection at hub: Formulation

 Sets
 RAW: set of raw material r
 COMP: set of chemical element c
 Constants
 : the unit cost of using a raw material
 : the chemical element c on raw material r
 the minimum chemical element c needed
 the maximum chemical element c needed
 : the raw material availability
 : the customer demand
Flight connection at hub: Formulation

 Decision Variables
 = 1, if and only if the plane coming from i continues its journey to destination j

 Objective Function
 Maximizes the number of passengers staying on board their plane at the hub

❑ ❑
𝑀𝑎𝑥𝑖𝑚𝑖𝑧𝑒 ∑ ∑ 𝑃𝐴𝑆𝑆𝑖𝑗 𝑐𝑜𝑛𝑡 𝑖𝑗
i∈Source j∈Destination
Flight connection at hub: Formulation

 Constraints:
❑

∀ 𝑗 ∈𝐷𝑒𝑠𝑡𝑖𝑛𝑎𝑡𝑖𝑜𝑛:
Every destination is served by exactly one flight
∑ 𝑐𝑜𝑛𝑡 𝑖𝑗 =1
𝑖∈𝑆𝑜𝑢𝑟𝑐𝑒

 One and only one flight leaves every origin ❑

∀ 𝑖∈𝑆𝑜𝑢𝑟𝑐𝑒 : ∑ 𝑐𝑜𝑛𝑡 𝑖𝑗 =1
𝑗 ∈𝐷𝑒𝑠𝑡𝑖𝑛𝑎𝑡𝑖𝑜𝑛

 Binary variable ∀ 𝑖∈ 𝑆𝑜𝑢𝑟𝑐𝑒 , 𝑗 ∈ 𝐷𝑒𝑠𝑡𝑖𝑛𝑎𝑡𝑖𝑜𝑛 :𝑐𝑜𝑛𝑡 𝑖𝑗 ∈ { 0,1 }

Flight connection at hub: Solution

 112 passengers stay on board their original plane

 The following table lists the corresponding flight connections:

Plane arriving continues to Number of

from destination passengers
Bordeaux London 38
Clermont-Ferrand Bern 8
Marseille Brussels 11
Nantes Berlin 38
Nice Rome 10
Toulouse Vienna 7
HOMEWORK (Part 5)

 Source: Xpress Book

 Cane sugar production (6.4)
 Assignment of production batches to machines (8.6)
 Exam scheduling (14.4)
 Formulate the problem
 Code it using Lingo
Part 6: Different Types
of Variables
• Bicycles
• Drinking Glasses
• Back up files
Bicycles

 A company produces bicycles for children. The sales forecast in thousand of

units for the coming year are given in the following table.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
30 15 15 25 33 40 45 45 26 14 25 30
 The company has a capacity of 30,000 bicycles per month.
Bicycles

 It is possible to augment the production by up to 50% through overtime

working, but this increases the production cost for a bicycle from the usual $
32 to $ 40.
 Currently there are 2,000 bicycles in stock.
 The storage costs have been calculated as $ 5 per unit held in stock at the
end of a month.
Bicycles

 We assume that the storage capacity at the company is virtually unlimited (in
practice this means that the real capacity, that is quite obviously limited,
does not impose any limits in our case).
 We are at the first of January. Which quantities need to be produced and
stored in the course of the next twelve months in order to satisfy the forecast
demand and minimize the total cost?
Bicycles: Formulation

 Sets
 MONTHS : the set of time periods t
 Constants
 : the production cost of a bicycle in normal hours
 : the production cost of a bicycle in overtime hours
 : the monthly storage cost per bicycle
 : The production capacity in normal working hours
 : the number of bicycles held in stock at the end of the month
 : the initial stock level
 : the forecasted demand for month t
Bicycles: Formulation

 Decision Variables
 : the numbers of bicycles to be produced respectively in normal working hours
during month t
 : the numbers of bicycles to be produced respectively in overtime hours during
month t
 : the numbers of bicycles to be stored at the end of month t
Bicycles: Formulation

 Objective Function
 Minimize the total cost (the sum of cost of production (in normal and additional
hours) and the storage cost)
❑
M inimize ∑ ( 𝐶𝑁𝑂𝑅𝑀 .𝑝𝑛𝑜𝑟𝑚𝑡 +𝐶𝑂𝑉𝐸𝑅 .𝑝𝑜𝑣𝑒𝑟 𝑡 +𝐶𝑆𝑇𝑂𝐶𝐾 .𝑠𝑡𝑜𝑟𝑒𝑡 )
t∈ MONTHS
Bicycles: Formulation

 Constraints:
 The balance constraint for the first month
𝑝𝑛𝑜𝑟𝑚1+𝑝𝑜𝑣𝑒𝑟 1 +𝐼𝑆𝑇𝑂𝐶𝐾 =𝐷𝐸𝑀 1+𝑠𝑡𝑜𝑟 𝑒 1

 The balance constraint for all following month

∀𝑡∈𝑀𝑂𝑁𝑇𝐻𝑆,𝑡≠1:𝑝𝑛𝑜𝑟𝑚𝑡+𝑝𝑜𝑣𝑒𝑟 𝑡+𝑠𝑡𝑜𝑟𝑒𝑡−1=𝐷𝐸𝑀𝑡+𝑠𝑡𝑜𝑟𝑒𝑡
Bicycles: Formulation

 Constraints:
 The production capacity in normal working hours is limited by the given capacity
CAP ∀ 𝑡 ∈ 𝑀𝑂𝑁𝑇𝐻𝑆 :𝑝𝑛𝑜𝑟𝑚𝑡 ≤ 𝐶𝐴𝑃
 the additional production in overtime hours is limited to 50% of this capacity

∀ 𝑡 ∈ 𝑀𝑂𝑁𝑇𝐻𝑆 :𝑝𝑜𝑣𝑒𝑟 𝑡 ≤ 0.5 ∗ 𝐶𝐴𝑃

 Non-negativity

∀ 𝑡 ∈ 𝑀𝑂𝑁𝑇𝐻𝑆 :𝑝𝑛𝑜𝑟𝑚𝑡 ≥ 0 , 𝑝𝑜𝑣𝑒𝑟 𝑡 ≥ 0 , 𝑠𝑡𝑜𝑟𝑒𝑡 ≥ 0

Bicycles: Solution

 The minimum cost for production and storage is $ 11,247,000

 The following table list the production plan for the coming year (in
thousands):

Ju
  Jan Feb Mar Apr May Jul Aug Sep Oct Nov Dec
n
Demand 30 15 15 25 33 40 45 45 26 14 25 30

Normal 28 15 15 28 30 30 30 30 26 14 25 30
Additiona
– – – – – 10 15 15 – – – –
l
Store – – – 3 – – – – – – – –
Drinking Glasses

 The main activity of a company in northern France is the production of

drinking glasses.
 It currently sells six different types (V1 to V6), that are produced in batches
of 1000 glasses, and wishes to plan its production for the next 12 weeks.
 The batches may be incomplete (fewer than 1000 glasses).
Drinking Glasses

 The demand in thousands for the 12 coming weeks and for every glass type is
given in the following table.

We
1 2 3 4 5 6 7 8 9 10 11 12
ek
V1 20 22 18 35 17 19 23 20 29 30 28 32
V2 17 19 23 20 11 10 12 34 21 23 30 12
V3 18 35 17 10 9 21 23 15 10 0 13 17
V4 31 45 24 38 41 20 19 37 28 12 30 37
V5 23 20 23 15 10 22 18 30 28 7 15 10
V6 22 18 20 19 18 35 0 28 12 30 21 23
Drinking Glasses

 For every glass type the initial stock is known, as well as the required final stock level (in
thousands).
Produc
Storage Initial Final Timew Timem Storage
  tion
cost stock stock orker achine space
cost
V1 100 25 50 10 3 2 4
V2 80 28 20 10 3 1 5
V3 110 25 0 10 3 4 5
V4 90 27 15 10 2 8 6
V5 200 10 0 10 4 11 4
V6 140 20 10 10 4 9 9

 Table above shows per batch of every glass type, the production and storage costs in $, together
with the required working time for workers and machines (in hours), and the required storage
space (measured in numbers of trays).
Drinking Glasses

 The number of working hours of the personnel is limited to 390 hours per
week
 The machines have a weekly capacity of 850 hours.
 Storage space for up to 1,000 trays is available.
 Which quantities of the different glass types need to be produced in every
period to minimize the total cost of production and storage?
Drinking Glasses: Formulation

 Sets
 PRODS: the set of products p
 WEEKS: the set of time periods t
 Constants
 : the production cost for glass type p
 : the storage cost for glass type p
 the worker times required per unit of product p
 the machine times required per unit of product p
 : the storage area
 : the initial stock level per product p
 : the desired final stock level per product p
Drinking Glasses: Formulation

 Constants
 : the demand for product p in time period t
 : the capacities of workers
 : the capacities of machines
 : the capacity of the storage area
 Decision Variable
 : the production of glass type p in time period t
 : the stock level of every product p at the end of period t
Drinking Glasses: Formulation

 Objective Function
 Minimize the total cost (the sum of cost of production and the storage cost for all
product and time periods)

❑ ❑
𝑚𝑖𝑛𝑖𝑚𝑖𝑧𝑒 ∑ ∑ ( 𝐶𝑃𝑅𝑂𝐷𝑝 .𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑝𝑡+𝐶𝑆𝑇𝑂𝑅𝐸 𝑝 . 𝑠𝑡𝑜𝑟𝑒𝑝𝑡 )
𝑝∈ 𝑃𝑅𝑂𝐷𝑆 𝑡∈𝑊𝐸𝐸𝐾𝑆
Drinking Glasses: Formulation

 Constraints:
 The stock balance constraint
∀𝑝∈𝑃𝑅𝑂𝐷𝑆,∀𝑡∈𝑊𝐸𝐸𝐾𝑆:𝑠𝑡𝑜𝑟𝑒𝑝𝑡=𝑠𝑡𝑜𝑟𝑒𝑝,𝑡 −1+𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑝𝑡 −𝐷𝐸𝑀 𝑝𝑡

∀ p ∈ PRODS: store p , NT ≥ FSTOCK p
The final stock levels (at the end of the planning period)

 The capacity limits on manpower

❑
∀ t ∈WEEKS : ∑ 𝑇𝐼𝑀𝐸𝑊 𝑝 .𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑝𝑡 ≤𝐶𝐴𝑃𝑊
𝑝 ∈𝑃𝑅𝑂𝐷𝑆
Drinking Glasses: Formulation

 Constraints:
❑
∑
 the capacity limits on machine time
∀ t ∈WEEKS : 𝑇𝐼𝑀𝐸𝑀 𝑝 .𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑝𝑡 ≤𝐶𝐴𝑃𝑀
𝑝 ∈𝑃𝑅𝑂𝐷𝑆

 the capacity limits on storage space ❑

∀t ∈WEEKS : ∑ 𝑆𝑃𝐴𝐶𝐸 𝑝 .𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑝𝑡 ≤𝐶𝐴𝑃𝑆
𝑝 ∈𝑃𝑅𝑂𝐷𝑆
Drinking Glasses: Formulation

 Constraints:

∀ p ∈ PRODS , ∀ t ∈WEEKS :𝑝𝑟𝑜𝑑𝑢𝑐𝑒 𝑝𝑡 ≥ 0
Non-negativity constraints for the production variables

 Non-negativity constraints for the stored quantities

∀ p ∈ PRODS , ∀ t ∈WEEKS :𝑠𝑡𝑜𝑟𝑒 𝑝𝑡 ≥ 0
 Drinking Glasses: Solution
 The minimum total cost is $ 185,899
 The table lists the quantities of the different glass types to produce in every week
of the planning period and the quantities held in stock at the end of every week

Wee
  1 2 3 4 5 6 7 8 9 10 11 12
k
1 Prod. 8.76 5.48 0.56 30.2 27.36 8.64 23 20 29 30 28 42
  Store 38.76 22.24 4.8 - 10.36 – – – – – – 10
2 Prod. 0 16 23 20 11 10 12 34 21 23 30 22
  Store 3 – – – – – – – – – – 10
3 Prod. 18 35 17 10 9 21 23 15 10 0 13 27
  Store – – – – – – – – – – – 10
4 Prod. 16 45 24 38 41 20 19 37 28 12 30 47
  Store – – – – – – – – – – – 10
5 Prod. 47.68 14.64 35.08 14.35 23.48 22.77 43.75 0 26.5 2.75 0 0
  Store 24.68 19.32 31.4 30.75 44.23 45 70.75 40.75 39.25 35 20 10
6 Prod. 12 18 20 19 18 35 0.75 27.25 12 49 29.25 5.75
  Store – – – – – – 0.75 – – 19 27.25 10
Back up files

 Before leaving on holiday, you wish to backup your most important files onto
floppy disks.
 You have got empty disks of 1.44Mb capacity. The sixteen files you would like
to save have the following sizes:
 46kb, 55kb, 62kb, 87kb, 108kb, 114kb, 137kb, 164kb, 253kb, 364kb, 372kb, 388kb,
406kb, 432kb, 461kb, and 851kb.
Back up files

 Assuming that you do not have any program at hand to compress the files and
that you have got a sufficient number of floppy disks to save everything
 How should the files be distributed in order to minimize the number of floppy
disks used?
Back up files: Formulation

 Sets
 FILES: the set of files to backup
 DISKS: the set of floppy disks
 Constants
 : capacity of a disk
 : size of file f in kbyte
 Decision Variables
Back up files: Formulation

 Objective Function
 Minimize the number of disks that are used

d
Back up files: Formulation
 Constraints:
 A file must be stored into a single disk
❑
∀ 𝑓 ∈ 𝐹𝐼𝐿𝐸𝑆: ∑ 𝑠𝑎𝑣𝑒 𝑓𝑑=1
 The capacity limits
𝑑∈𝐷𝐼𝑆𝐾𝑆

❑
∀𝑑∈ 𝐷𝐼𝑆𝐾𝑆: ∑ 𝑆𝐼𝑍𝐸 𝑓 .𝑠𝑎𝑣𝑒 𝑓𝑑 ≤𝐶𝐴𝑃 ∗ 𝑑𝑖𝑠𝑘𝑢𝑠𝑒𝑑

𝑓 ∈𝐹𝐼𝐿𝐸𝑆
Binary variables
Back up files: Solution

 The optimal solution is using three disks

 The files may be distributed to the disks as shown in the following table:

Used space
Disk File sizes (in kb)
(in Mb)
46; 87; 137; 164; 253; 364;
1 1.439
388
2 55; 62; 108; 372; 406; 432 1.435
3 114; 461; 851 1.426
HOMEWORK (Part 6)

 Source: Xpress Book

 Refinery (6.3)
 Material Planning (8.3)
 Electronic components (8.4)
 Family budget (13.5)
 Formulate the problem
 Code it using Lingo
Summary

 In Chapter 4, we learnt about:

 How to formulate real life problems (engineering and industrial applications) using
Formulation (simple and Compact form).
 How to use of different types of variables in linear programming model.