Quantitative Analysis for Management - III

Course Instructor: Sonia

QAM III
Integer Programming
Model formulation Graphical method Branch and bound algorithm Bin packing problem Traveling salesman problem Decision making without probabilities Decision making with probabilities Decision making with experimentation Decision tree

Decision Analysis

Queueing Theory
Basic queueing models Single server queueing systems Multi server queueing systems

Simulation

Integer Programming
Optimization Problem

Continuous Optimization Problem

Discrete Optimization Problem

Integer Programming Problem

Integer Program
Linear programming with integrality restrictions Integrality restrictions that some variables can only have values
0 or 1 Integer values Values in some specified discrete set

Example: 0-1 variables

In automobile design, one need to decide whether to use cast iron or aluminium engine block. Introduce a binary variable
y = 0, if cast iron block used y = 1, if aluminum block used

Restrict y to 01 values only Other values for y have no meaning Such 01 variables called combinatorial choice variables.

Example: Integer Variables

Army decides to use combat simulators to train soldiers. Each costs $ 5 million US. Let y = no. of combat simulators purchased by Army. Then y 0 is an integer variable.

Example: Discrete Variables

In designing water distribution system for a city, diameter of pipe to be used for a particular link needs to be decided. Pipe available only in diameters 16", 20", 24", 30". If y = diameter of pipe used on this link y can only take a value from set {16; 20; 24; 30}. A discrete valued variable.

Types of Integer Program

Pure Integer Linear Program (PIP)
If all variables are required to take integer values only, model is called a Pure IP Model. In addition, if they are all required to be 0 or 1, model called a 01 Pure IP Model.

Mixed Integer Linear Program (MIP)

If some variables are required to be integer, and others can be continuous, model is called a Mixed IP Model. If all integer decision variables are binary, model called 01 MIP.

Integer Feasibility Problem

It refers to one with no obj. function to optimize, but aim is to find an integer solution to a given system of linear constraints. In such model, if all variables binary, it is called 01 Feasibility Problem.

Formulation of Integer Programs

Can be tricky due to integer/binary variables:
they represent yes/no rather than quantity. Logical implications.

Identify/define variables carefully. Write constraints so that they are linear constraints Requires practice to formulate integer programs correctly and efficiently.

A Job Training Problem

A machine tool company conducts a job-training program for machinists.
Trained machinists are used as teachers in the program at a ratio of one for every ten trainees. The training program lasts for one month. From past experience it has been found that out of ten trainees hired, only seven complete the program successfully (the unsuccessful trainees are released). Trained machinists are also needed for machining and the companys requirements for the next 3 months are as follows:
January 100 February 150 March 200

In addition, the company requires 250 trained machinists by April. There are 130 trained machinists available at the beginning of the year. Payroll costs per month are:
Each trainee $400 Each trained machinist $700 (Machining or teaching) Each trained machinist idle $500

Set up the linear programming problem that will produce the minimum cost hiring and training schedule and meet the companys requirements.

A Job-Training Problem
Trained Machinist:
Work a machine Teach Stay idle

Decision Variables:
x1: trained machinist teaching in January x2: trained machinist idle in January x3: trained machinist teaching in February x4: trained machinist idle in February x5: trained machinist teaching in March x6: trained machinist idle in March

Machining + Teaching + Idle = Trained machinists available

Constraints:

100 + x1 + x2 = 130 150 + x3 + x4 = 130 + 7x1 200 + x5 + x6 = 130 + 7x1 + 7x3 130 + 7x1 + 7x3 + 7x5 = 250
Objective:

(Jan) (Feb) (Mar) (Apr)

Minimize 400(10x1 + 10x3 + 10x5) + 700 (x1 + x3 + x5) +500(x2 + x4 + x6) + 700(100 +150 +200)
Non-Negativity:

x1, x2, x3, x4, x5, x6 0 and integers

Project Assignment Problem

Decision Variables:

Objective Function:

Constraints:
Each person must be assigned to exactly one project

Each project must have at least one person assigned to it

At least two persons must be assigned to project 2

Not more than two persons can be assigned to project 3

Persons 4 and 5 should be assigned to same project

Knapsack Problem
Decision Variables:

Objective Function:

Constraints:

Bin Packing Problem

Decision Variables:

Objective Function:

Constraints:

Traveling Salesman Problem

Decision Variables:

Objective Function:

Constraints:

(Where S is the compliment of S and N is the set of all cities)

Procurement Problem
Decision Variables:

Objective Function: Constraints:

Plant Location Problem

Decision Variables:

Objective Function:

Constraints:

Sudoku Puzzle

Sudoku Formulation
Decision Variables:

Constraints: