BUS201 Lecture 6 Post
BUS201 Lecture 6 Post
Week 6
Integer Programming
Reminder
Midterm Exam will be given on FRIDAY, November 8,
between 18:40-20:40 in room AB3.135.
The exam will be on paper, no computers.
Topics covered
Linear programming:
Model formulation- YES
Graphical solution - YES
Spreadsheet solution- NO
Sensitivity Analysis- YES
Integer Programming - YES
Decision variables:
Xi = # of units of product i to be produced, i = 1,..,5
Yi = 1 if product i is produced, = 0 otherwise (
binary)
Additional Constraints:
All Xi >= 0
All Yi =: (0-1)
What about linking production amount Xs and
equipment Ys?
Linking Non-negative Xs and Binary Ys
The linking constraint should ensure the following:
If Xi > 0, then Yi =1, so that the fixed cost is
paid.
If Xi = 0, then Yi=0, because there should not
be fixed cost
SO??
Add constraint: Xi <= Mi*Yi, where Mi is a large
enough number
Add in the objective function: Fixed cost*Yi
Note that Mi imposes an upper bound on Xi.
Sometimes the upper limit, Ui, on variable Xi is
given. In this case use Xi <= Ui*Yi
Finding Reasonable Values for Mi
Consider the resource constraints
…. <= 4000 (labor hrs)
…… <= 4500 (cloth)
What is the maximum value X1 can assume?
Assume X2 = X3 = 0
From the resource constraints, the
maximum value of X1 is:
M1 = min(4000/2, 4500/3) = min(2000, 1500)
= 1500.
Thus, the constraint would be: X1 <= 1500
Y1
But, if you use just
X1 <= 2000 Y1 (from labor hrs)
Defining the Constraints
Resource Constraints:
2 X1+X2+..….+8 X5 <= 4000 (labor hrs)
3 X1+2.5 X2+..….+5.5 X5 <= 4500 (cloth)
Nonnegativity Constraints:
All Xi >= 0
Binary Constraints:
All Yi must be binary
What about linking production amount Xs and equipment Ys?
X1 <= (4000/2) Y1
X2 <= (4000/1) Y2
….
Potential Pitfall
Do not use IF( ) functions to model the relationship between the Xi and Yi.