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Mathematical Modelling
`
Simplification
Assumptions
Variables (Key)
Structure
Accuracy
Sensitivity Analysis
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Updated (2002)
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OR Techniques
`
Linear programming
Network analysis
Simulation
Queuing analysis
Decision theory
Dynamic programming
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Maximise/Minimise Z=
subject to:
n
a
j =1
ij
xj
xi 0
c x
{, =, }
j =1
bi
(i = 1,..., m)
( j = 1,..., n)
Where:
(n) is the number of decision variables
(m) is the number of constraints
(a) is a known coefficient for each variable in the constraints
(b) is a known right-hand side of the constraint
(c) is a known cost/revenue coefficient for the decision variable
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Application Areas
allocating factory space among competing product lines
developing work schedules that use personnel times efficiently
determining expenditure levels of various activities
optimising mix of products from an operation
optimising assignment of crews to vehicles for a public transport
system
Classical Transport-Related Problems
Postman problem
Travelling salesman problem
Vehicle routing problem
Transportation problem
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Application Areas
Vehicle Routing
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Application Areas
Transportation Problem e.g. transporting goods from
Coles warehouses to suburban stores
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Example 1
A concrete factory produces two types of products: pre-stressed concrete
beams and reinforced concrete pipes.
Only 1000 units of cement are available for the production of beams and
only 40 moulds are available for the production of pipes.
Each beam produced requires two units of cement and each pipe produced
requires one unit of cement. Each mould has a capacity of 10 pipes.
Furthermore, each beam produced yields a profit of $20 and each pipe
produced yields a profit of $50.
What is the optimal production mix?
In other words, how many beams and pipes should be produced so as to
maximise profits?
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Example 1: Solution
Step 1:
Beams
Pipes
X1
X2
Profit ($)
20
50
cement units
moulds
400
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Example 1: Solution
Step 2: Define constraints:
Beams
Pipes
X1
20
X2
50
400
Constraint 1:
Limited number of cement units: The total number
of cement units used in the production of beams and
pipes should not exceed 1000 units.
2 x1+ x2 1000
Constraint 2:
Profit
cement
units
moulds
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Example 1: Solution
Step 3: Solve the problem
For a problem with two variables, we can find the solution using a graphical
method. For problems with more than two decision variables, the solution is
found using a computer software based on the Simplex Method. We will use
LINDO.
Feasible region (feasible solution space): The set of all variable values which
satisfy the constraints. Each element of the feasible region is called a feasible
solution.
Optimal solution is always found at one (or more) corner points. A corner
point is a feasible solution defined by the intersection of two (or more)
constraints.
Any set of variable values which violates at least one the constraints is called
an infeasible solution.
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Example 1: Solution
X2
Maximise
Z=20 x1 + 50 x2
2 x1+ x2 1000
x2 400
Subject to:
(0,1000)
x1,x2 0
C (300,400)
B (0,400)
A (0,0)
Z=0
B (0,400)
Z=20,000
C (300,400)
Z=26,000
D (500,0)
Z=10,000
Optimal Solution:
Feasible Region
X1
D (500,0)
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Example 2
A company needs to dispose of 2500 tons of plastic waste per week
using two incinerators. The company has been instructed by the EPA to
limit its sulfur dioxide emissions to 400,000 units per week and its
particulate emissions to 50,000 units per week. What is the maximum
amount that the company can burn per week such that the EPA
requirements are met ?
Emissions per ton burned
Incinerator
Capacity
(tons/week)
Units of Sulfur
Dioxide
Units of
Particulate
A
B
1200
800
360
250
40
60
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Example 2: Solution
Let x1= tons of plastic waste burned in incinerator A
Let x2= tons of plastic waste burned in incinerator B
Emissions per ton burned
Incinerator
Capacity
(tons/week)
Units of
Sulfur
Dioxide
A
B
1200
800
360
250
Units of
Particulate
40
60
x1,x2 0
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Example 2: Solution
X2
Maximise x1+x2
Subject to:
(0,1600)
360 x1 + 250 x2
40 x1 + 60 x2
x1
x2
(0,833.3)
400,000
50,000
1,200
800
C (50,800)
B (0,800)
D (991.4,172.4)
Feasible Region
A (0,0)
A (0,0)
Z=0
B (0,800)
Z=800
C (50,800)
Z=850
D (991.4, 172.4)
Z=1163.8
E (1111.1,0)
Z=1111.1
X1
E (1111.1,0)(1200,0)
(1250,0)
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Example 3
Minimise 10 X1 + 8 X2
Subject to:
X1 4
X1+ 3X2 12
X1 + X2 8
X1, X2 0
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Example 3: Solution
Minimise 10 X1 + 8 X2
X2
Subject to:
X1 4
X1+ 3X2 12
X1 + X2 8
(0,8)
X1, X2
Feasible Region
A (4,4)
A (4,4)
Z=72
B (6,2)
Z=76
C (12,0)
Z=120
(0,4)
B (6,2)
C (12,0)
X1
(4,0)
(8,0)
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Maximise
Subject to:
Z=3 x1 + 5 x2
2 x1+ x2 12
4x1 + 5x2 40
x1,x2 0
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Example 4- Solution
X2
Maximise
Subject to:
(0,12)
Z=3 x1 + 5 x2
2 x1+ x2 12
4x1 + 5x2 40
x1,x2 0
B (0,8)
C (10/3,16/3)
A (0,0)
Z=0
B (0,8)
Z=40
C (10/3,16/3)
Z=36.7
D (6,0)
Z=18
Feasible Region
A (0,0)
X1
D (6,0)
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Page 12
25
8
10
(c)
(a)
(a)
(b)
x1,x2 0
(c)
(b)
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36
2
4
x1,x2 0
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x2
6
10
x1 + x2
x1,x2 0
(a)
No feasible region!
(a)
(b)
(b)
(c)
(c)
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d (2,50)
Minimise 2x1 - x2
Subject to
-x1 +x2 2
x1 6
x1,x2 0
(c)
Point a (0,2): U= -2
Point b (0,7): U= -7
Point c (0,12): U= -12
(b)
(a)
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Maximise 2x1 + x2
Subject to
x1 + x2 8
x1 + 2 x2 12
6 x1 + 5 x2 60
(0,12)
(0,8)
(1)
(2)
(3)
x1,x2 0
(0,6)
Feasible Region
(12,0)
X1
(8,0)
(10,0)
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Supply
$6
$2
$6
$7
30
$4
$9
$5
$3
25
$8
$8
$1
$5
21
Factory
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Demand
15
17
22
12
66
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Solution
Let xij= number of units transported from factory (i) to warehouse (j)
1
1
$6
2
$2
3
$6
4 S
$7 30
$4
$9
$5
$3
25
$8
$8
$1
$5
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Objective function:
Minimise (6x11+2x12+6x13+7x14) + (4x21+9x22+5x23+3x24)+
(8x31+8x32+1x33+5x34)
Constraints:
1. Do not exceed the supply capacity at factories:
x11+x12+x13+x14 <= 30 ...(1)
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15
17
22
12
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Input
Solution
1
?
2
?
3
?
4
?
S
30
25
21
15 17 22 12
Solution
1
1
2
2
17
3
1
4
0
13
12 25
21
S
20
21
15 17 22 12
Reduced Cost
A variable already in the optimal solution
has a reduced cost of ZERO (e.g. X11 in
example).
For all other variables, it represents the
amount of penalty you would pay to
introduce a variable in the solution.
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34
35
Demand
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As long as:
20 < Supply at Factory 1 < INFINITY
then the mix of variables in the optimal
solution (and their values) remain
unchanged.
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Problem Formulation
Do combinations e.g.
some refurbishment (<25)
and some refitting (<35).
or
or
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X2
Constraints:
1/25 x1 + 1/35 x2 < 1
1/33 x1 + 1/17 x2 < 1
(0,17)
C (3.88,15)
B (0,15)
D (20.34,6.5)
Feasible Region
E (22,4.2)
or
or
A (0,0)
Z= 0
B (0,15)
Z= 52,500
C (3.88,15)
Z= 64,140
D (20.34,6.5)
Z= 83,840
E (22,4.2)
Z= 80,700
F (22,0)
Z= 66,000
X1
A (0,0)
F (22,0)
(25,0)
(33,0)
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Constraints:
1/25 x1 + 1/35 x2 < 1
1/33 x1 + 1/17 x2 < 1
(0,17)
C (3.88,15)
B (0,15)
or
or
A (0,0)
Z= 0
B (0,15)
Z= 52,500
C (3.88,15)
Z= 64,140
D (20.34,6.5)
D (20.34,6.52)
Z= 83,840
D1 (20,6)
D2 (20,7)
Z= 81,000
outside feasible region
E (22,4.2)
Z= 80,700
F (22,0)
Z= 66,000
G (19,7) Z=81,500
Feasible Region
E (22,4.2)
X1
A (0,0)
F (22,0)
(25,0)
(33,0)
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Problem Formulation
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LINDO Solution
5
6
4
0
3
0
2
2
2
2
0
0
2
0
0
2
2
2
100
200
1
1
2
0
3
0
90
1
1
2
100
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Solution
3x1+x2 6
x1,x2 0
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