Introduction to Management Science

9th Edition
by Bernard W. Taylor III
Chapter 5
Integer Programming

2007 Pearson Education

Chapter 5 - Integer

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

Integer Programming Models

Types of Models
Total Integer Model: All decision variables required to have
integer solution values.
0-1 Integer Model: All decision variables required to have
integer values of zero or one.
Mixed Integer Model: Some of the decision variables (but
not all) required to have integer values.

Chapter 5 - Integer

A 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:

Chapter 5 - Integer

A Total Integer Model (2 of 2)

Integer Programming Model:
Maximize Z = $100x1 + $150x2
subject to:
8,000x1 + 4,000x2 $40,000
15x1 + 30x2 200 ft2
x1, x2 0 and integer
x1 = number of presses
x2 = number of lathes
Chapter 5 - Integer

A 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:

Chapter 5 - Integer

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

A 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

A 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

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 noninteger solution values but may result in a less than optimal
(sub-optimal) solution.

Chapter 5 - Integer

10

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

11

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

12

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

Chapter 5 - Integer

13

Computer Solution of IP Problems

0 1 Model with Excel (2 of 5)

Exhibit 5.2

Chapter 5 - Integer

14

Computer Solution of IP Problems

0 1 Model with Excel (3 of 5)

Exhibit 5.3

Chapter 5 - Integer

15

Computer Solution of IP Problems

0 1 Model with Excel (4 of 5)

Exhibit 5.4

Chapter 5 - Integer

16

Computer Solution of IP Problems

0 1 Model with Excel (5 of 5)

Exhibit 5.5

Chapter 5 - Integer

17

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

Chapter 5 - Integer

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Computer Solution of IP Problems

0 1 Model with QM for Windows (2 of 3)

Exhibit 5.6

Chapter 5 - Integer

19

Computer Solution of IP Problems

0 1 Model with QM for Windows (3 of 3)

Exhibit 5.7

Chapter 5 - Integer

20

Computer Solution of IP Problems

Total Integer Model with Excel (1 of 5)
Integer Programming Model:
Maximize Z = $100x1 + $150x2
subject to:
8,000x1 + 4,000x2 $40,000
15x1 + 30x2 200 ft2
x1, x2 0 and integer

Chapter 5 - Integer

21

Computer Solution of IP Problems

Total Integer Model with Excel (2 of 5)

Exhibit 5.8

Chapter 5 - Integer

22

Computer Solution of IP Problems

Total Integer Model with Excel (4 of 5)

Exhibit 5.9

Chapter 5 - Integer

23

Computer Solution of IP Problems

Total Integer Model with Excel (3 of 5)

Exhibit 5.10

Chapter 5 - Integer

24

Computer Solution of IP Problems

Total Integer Model with Excel (5 of 5)

Exhibit 5.11

Chapter 5 - Integer

25

Computer Solution of IP Problems

Mixed Integer Model with Excel (1 of 3)
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

Chapter 5 - Integer

26

Computer Solution of IP Problems

Total Integer Model with Excel (2 of 3)

5.12
ChapterExhibit
5 - Integer

27

Computer Solution of IP Problems

Solution of Total Integer Model with Excel (3 of 3)

Exhibit 5.13

Chapter 5 - Integer

28

Computer Solution of IP Problems

Mixed Integer Model with QM for Windows (1 of 2)

Exhibit 5.14

Chapter 5 - Integer

29

Computer Solution of IP Problems

Mixed Integer Model with QM for Windows (2 of 2)

Exhibit 5.15

Chapter 5 - Integer

30

0 1 Integer Programming Modeling Examples

Capital Budgeting Example (1 of 4)
University bookstore expansion project.
Not enough space available for both a computer department
and a clothing department.
Data:

Chapter 5 - Integer

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0 1 Integer Programming Modeling Examples

Capital Budgeting Example (2 of 4)
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
32

0 1 Integer Programming Modeling Examples

Capital Budgeting Example (3 of 4)

Exhibit 5.16

Chapter 5 - Integer

33

0 1 Integer Programming Modeling Examples

Capital Budgeting Example (4 of 4)

Exhibit 5.17

Chapter 5 - Integer

34

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?
Data:

Shipping Costs

Chapter 5 - Integer

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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 + x3B + x4B + x5B + x6B = 10
x1C + x2C + x3C + x4C + x5C + x6C = 14
x 0

Chapter
y = 0 or
1

5 - Integer

36

0 1 Integer Programming Modeling Examples

Fixed Charge and Facility Example (3 of 4)

5.18
ChapterExhibit
5 - Integer

37

0 1 Integer Programming Modeling Examples

Fixed Charge and Facility Example (4 of 4)

Exhibit 5.19

Chapter 5 - Integer

38

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
1. Atlanta
2. Boston
3. Charlotte
4. Cincinnati
5. Detroit
6. Indianapolis
7. Milwaukee
8. Nashville
9. New York
10. Pittsburgh
11. Richmond
12. St. Louis

Cities within 300 miles

Atlanta, Charlotte, Nashville
Boston, New York
Atlanta, Charlotte, Richmond
Cincinnati, Detroit, Indianapolis, Nashville, Pittsburgh
Cincinnati, Detroit, Indianapolis, Milwaukee, Pittsburgh
Cincinnati, Detroit, Indianapolis, Milwaukee, Nashville,
St. Louis
Detroit, Indianapolis, Milwaukee
Atlanta, Cincinnati, Indianapolis, Nashville, St. Louis
Boston, New York, Richmond
Cincinnati, Detroit, Pittsburgh, Richmond
Charlotte, New York, Pittsburgh, Richmond
Indianapolis, Nashville, St. Louis

Chapter 5 - Integer

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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:
Boston:
Charlotte:
Cincinnati:
Detroit:
Indianapolis:
Milwaukee:
Nashville:
New York:
Pittsburgh:
Richmond:

x1 + x3 + x8 1
x2 + x10 1
x1 + x3 + x11 1
x4 + x5 + x6 + x8 + x10 1
x4 + x5 + x6 + x7 + x10 1
x4 + x5 + x6 + x7 + x8 + x12 1
x5 + x6 + x7 1
x1 + x4 + x6+ x8 + x12 1
x2 + x9+ x11 1
x4 + x5 + x10 + x11 1
x3 + x9 + x10 + x11 1

Chapter 5 - Integer

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0 1 Integer Programming Modeling Examples

Set Covering Example (3 of 4)

Exhibit 5.20
Chapter
5 - Integer

41

0 1 Integer Programming Modeling Examples

Set Covering Example (4 of 4)

Exhibit 5.21

Chapter 5 - Integer

42

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

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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

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Total Integer Programming Modeling Example

Solution with QM for Windows (3 of 3)

Chapter 5 - Integer

45

End of chapter

Chapter 5 - Integer

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