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BUS201 Lecture 6 Post

The document outlines the topics for Week 6 of BUS 201, focusing on Integer Programming, including model types and applications in employee scheduling and fixed-cost manufacturing problems. It details the midterm exam schedule and topics, as well as the structure of integer programming models, including total integer, 0-1 integer, and mixed integer models. Additionally, it provides examples and optimization strategies for real-world scenarios using Excel.
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0% found this document useful (0 votes)
15 views38 pages

BUS201 Lecture 6 Post

The document outlines the topics for Week 6 of BUS 201, focusing on Integer Programming, including model types and applications in employee scheduling and fixed-cost manufacturing problems. It details the midterm exam schedule and topics, as well as the structure of integer programming models, including total integer, 0-1 integer, and mixed integer models. Additionally, it provides examples and optimization strategies for real-world scenarios using Excel.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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BUS 201

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

Next class, on November 5, we will have Quiz #3 & continue


Integer Programming.
Chapter Topics
Integer Programming (IP) Models
Integer Programming Graphical Solution
Computer Solution of Integer Programming Problems With
Excel
Introduction
 When one or more variables in an LP problem must assume an
integer value we have an Integer Linear Programming (ILP)
problem.
 ILPs occur frequently:

Number of workers, planes, machines, etc. must be integer.


Selection of projects, workers, advertisements.
Fixed cost must be paid, fixed resource quantity must be used.
 Integer variables also allow us to build more accurate models
for a number of common business problems.
NOTE…
Please note that when you define any integer constraint
in Excel, Solver does not provide a sensitivity report
Integer Programming Models
Types of Models

Total Integer All decision variables required to


Model: have integer solution values.

0-1 Integer All decision variables required to


Model: have integer values of zero or one.

Mixed Integer Some of the decision variables (but


Model: not all) required to have integer
values.
A Total Integer Model
An Employee Scheduling Problem:
Air-Express

Air-Express has to schedule workers to ensure the minimum


number of workers on each day of week.
Each worker must work 5 consecutive days and have 2
consecutive days off. The wage depends on which days are off.
Their problem is to make the employee scheduling at minimum
total cost.
Day of Week Workers Needed Shift Days Off Wage
Sunday 18 1 Sun & Mon $680
Monday 27 2 Mon & Tue $705
Tuesday 22 3 Tue & Wed $705
Wednesday 26 4 Wed & Thr $705
Thursday 25 5 Thr & Fri $705
Friday 21 6 Fri & Sat $680
Saturday 19 7 Sat & Sun $655
Employee scheduling models
The trickiest part is identifying the appropriate decision
variables.
Are decision variables the numbers of employees working on
the various days of the week ?
But an employee working on Sunday and Monday can be the
same people, thus double counted in the objective?
So?
Optimization Musts: Employee Scheduling
Decision variables:
# of employees scheduled for each shift
7 DVs
All integers
Objective Function.
Minimize total cost
Constraints:
For each day, enough number of employees
So, 7 constraints
+ non-negativity constraint
+ integer constraints
Employee Scheduling Model
Xi = # of workers assigned to shift i, i = 1..7
Minimize the total wage expense:
 min 680X1 + 705X2 + 705X3 + 705X4 + 705X5 + 680X6 + 655X7

Workers required on each day of the week:


 + X2 + X3 + X4 + X5 + X6 >= 18 (Sunday)
 + X3 + X4 + X5 + X6 + X7 >= 27 (Monday)
 X1 + X4 + X5 + X6 + X7 >= 22 (Tuesday)
 X1 + X2 + X5 + X6 + X7 >= 26 (Wednesday)
 X1 + X2 + X3 + X6 + X7 >= 25 (Thursday)
 X1 + X2 + X3 + X4 + X7 >= 21 (Friday)
 X1 + X2 + X3 + X4 + X5 >= 19 (Saturday)
 Nonnegativity & integrality conditions
 Xi >= 0 and integer for all i = 1..7
Excel Solution

How to assure Xi are integer for all i = 1..7 in Excel ?


Excel Solution
IF YOUR SOLVER STILL GIVES NON-INTEGERS
A 0-1 Integer (Binary) Model
Binary Variables
 Binary variables are integer variables that can assume only
two values: 0 or 1.
 In a Binary model, we say: All xi are binary
 These variables can be useful in a number of practical
modeling situations:
Yes – No
Select – Not Select
Go – No Go
Paying fixed cost or achieving fixed profit
Using fixed quantity of resource
Recreation facilities -0 - 1 Integer Model

Recreation facilities selection to maximize daily usage by


residents.
Resource constraints:
 200,000 TL budget;
 40 000 m2 of land.
Each facility can be chosen at most once.
Selection constraint: either athletic field or gymnasium (not
both).
Optimization Musts: Recreation facilities
Decision variables:
Whether to build each possible facility or not?
4 DVs
All 0 or 1
Objective Function.
Maximize daily usage
Constraints:
Total budget constraint
Total land constraint
Either athletic field or gymnasium
Binary constraints
Recreation Project
Integer Programming Model:
Maximize Z = 300x1 + 90x2 + 400x3 + 150x4
subject to:
70,000x1 + 20,000x2 + 50,000x3 + 110,000x4  200,000 TL
10x1 + 8x2 + 28x3 + 12x4  40 (thousand m2)
x3 + x4  1 facility
x1, x2, x3, x4 = 0 or 1
x1 = whether to construct a swimming pool or not
x2 = whether to construct a tennis center or not
x3 = whether to construct an athletic field or not
x4 = whether to construct a gymnasium or not
Excel Solution

How to assure x1, x2, x3, x4 = 0 or 1 in Excel ?


Excel Solution
Solving ILP Problems
 In many LP problems solutions may be fractional.
 When solving an LP relaxation, sometimes you “get lucky”
and obtain an integer feasible solution., e.g., transportation
problems.
What would happen if you remove binary constraints in Recreation
facilities problem ???
Mixed Integer
(Both integer and Binary)
Model
The Fixed-Charge (Cost) Problem
 Many decisions result in a fixed or lump-sum cost being incurred
“if a condition is satisfied”:
•The cost to lease, rent, or purchase a piece of
equipment or a vehicle that will be required if a
particular action is taken.
•The setup cost required to prepare a machine or
to produce a different type of product.
•The cost to construct a new production line that
will be required if a particular decision is made.
Fixed Cost Manufacturing Problem
The Great Threads Company is capable of manufacturing shirts,
shorts, pants, skirts, and jackets. Each type of clothing requires the
appropriate type of machinery available. The machinery needed to
manufacture each type of clothing must be rented at the weekly
rates. Total labor is 4000 hrs and cloth is 4500 yards.
The objective is to decide how many of each type of product to
produce to maximize weekly profit (revenue-cost)
Shirts Shorts Pants Skirts Jackets
Labor hours/unit 2 1 6 4 8
Cloth (sq. yd.)/unit 3 2.5 4 4.5 5.5

Selling price/unit $35 $40 $65 $70 $110


Variable cost/unit $20 $10 $25 $30 $35
Fixed cost for equipment $1,500 $1,200 $1,600 $1,500 $1,600
Optimization Musts: Fixed Cost Manufacturing
Decision variables:
Whether to produce each product or not?
If yes, how much to produce per week?
5 binary (0-1) DVs and 5 regular DVs
Objective Function.
Maximize weekly profit (revenue-cost)
Constraints:
Total labor constraint per week
Total cloth constraint per week
Binary constraints
Relation between binary & regular DVs
The Ball is on your court…
Please model the problem on Word and submit
Decision Variables and the Objective Function

 Decision variables:
Xi = # of units of product i to be produced, i = 1,..,5
Yi = 1 if product i is produced, = 0 otherwise (
binary)

Maximize total profit:


max (35-20)X1 + (40-10)X2 + …+(110-35)X5 –
1500Y1 – 1200Y2 – ….-1600Y5
Defining the Constraints
Resource Constraints:
2 X1+X2+..….+8 X5 <= 4000 (labor hrs)
3 X1+2.5 X2+..….+5.5 X5 <= 4500 (cloth)

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.

Suppose cell A5 represents X1


Suppose cell A6 represents Y1
You’ll want to let A6 = IF(A5>0,1,0)
This is not a linear constraint!
 Treat the Yi just like any other variable.

Select Yi as changing cells.


Use the linking constraints to enforce the proper
relationship between the Xi and Yi.
Add binary constraint on Yi.
Excel Solution
Take-Aways
Presented IP spreadsheet models of many diverse situations.
Discussed both integer, binary, and mixed examples

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