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BC

Operations Problem Set


Integer Programming

1. Carroll Inc.

Carroll Inc. is considering the following integer linear program:

Maximize Z=5x1+8x2

Subject to:
(1) 6x1+5x2≤30
(2) 9x1+4x2≤36
(3) x1+2x2≤10
x1,x2≥0 and integer

a. Graph this problem, showing all constraints and indicating all feasible integer
solutions with dots.

b. Find and circle the relaxed linear programming solution. Round down to find
a feasible integer solution.

c. Find the optimal integer solution. Is it the same as the rounded down
solution in part b?



2. Okoye Development

Okoye Development will own and operate a new apartment building. Okoye has $1
million available to build it. The building will consist of one-bedroom and two-
bedroom units. Each one-bedroom apartment will cost $141,000 to build, and each
two-bedroom $200,000. Local zoning will allow no more than 5 one-bedroom units
in the building. The building will be staffed by a property manager who can devote
up to 70 hours per month to its operation. Each one-bedroom will require 8 hours
of the managers’ time per month and each two-bedroom unit 16 hours. The net
monthly cash flow will be an estimated $5,000 for each one-bedroom apartment and
$7,500 for each two-bedroom. Okoye wants to know how many of each type of unit
to put into the building to maximize its monthly cash flow.

a. Formulate a linear program to solve Okoye’s problem.

b. Create a spreadsheet model to solve the problem. How many units of
each type does it recommend?

3. Subramaniam Construction

Subramaniam Construction is erecting an office building for which it needs 5
steel I-beams that are three meters long, 10 that are five meters long, and 20 that
are seven meters long. I-beams are only manufactured in twenty-meter lengths, but
Subramaniam’s crew can cut different combinations of the smaller beams out of the
full-length ones. Each of these combinations is called a “cut pattern”, and there are
seven such patterns possible that have little waste:

Number of beams
Cut Pattern Three-meter Five-meter Seven-meter Waste (meters)
A 6 0 0 2
B 0 4 0 0
C 2 0 2 0
D 0 1 2 1
E 1 3 0 2
F 1 2 1 0
G 4 0 1 1

For example, a full beam cut according to pattern C will produce 2 three-meter
beams, zero five-meter beams, and 2 seven-meter beams, with no waste left over.
Subramaniam must buy full beams and pay full price no matter how much of
the material they use. So the company wants to figure out how to cut them to get
their needs out of the smallest number of beams possible. It’s acceptable to end up
with some extra beams of the required lengths, as they can be saved and used later.

a. Formulate a linear programming model to determine how many of each cut
pattern to use.

b. Create a computer model to run the program. How many of each cut pattern
does it recommend?

c. How is the solution different if the decision variables (number of full-length
beams of each cut pattern) are NOT restricted to being integer?

d. Suppose Subramaniam decides it wants to minimize total waste instead of
the total number of full-length beams used. Formulate a new linear
programming model and use it to find the new solution.



4. M&M Investments Capital Budgeting

M&M Corporation is preparing an integer program to determine which of its
five proposed projects to fund. The decision of whether to fund the individual
projects or not is represented by five 0-1 variables, x1-x5. Using these decision
variables:

a. Write a constraint modeling a situation in which either project 4 or 5
must be undertaken, but not both.

b. Write a constraint modeling a situation in which exactly two of the
projects 1, 3 and 5 must be undertaken.

c. Write a constraint modeling a situation in which projects 2 and 3 can only
be funded if they are both funded.

d. Write a constraint modeling a situation where if either project 2 or 3 are
funded, project 4 cannot be funded.

e. Write a constraint modeling a situation where project 5 can be funded
only if project 2 is funded and project 3 is not funded.


5. David Inc. Investment Alternatives

David Inc. must choose between a series of new investment alternatives. The
potential investment alternatives, net present value of the future stream of returns,
the capital requirements, and the available capital funds over the next three years
are summarized as follows:
Capital Requirements ($)
Alternative Net Present Year 1 Year 2 Year 3
Value ($)
1. Expand 3,000 2,000 4,000 2,000
Existing
Warehouse
2. Build a new 6,000 2,500 4,500 3,000
Warehouse
3. Purchase 2,000 1,000 950 4,000
Equipment
4. New 2,500 500 1,000 2,500
Marketing
Campaign
5. New 12,000 10,000 1,000 3,500
Product
Launch
6. Market 10,000 8,000 600 1,500
Research
Capital Funds 12,500 10,000 8,550
Available


a. Formulate an integer programming model for maximizing the total NPV.

b. Assume that only one of the warehouse projects can be implemented. Write
the constraint that represents this condition.


c. Suppose that, if and only if the new product is launched, the marketing
campaign also must be conducted. Write the constraint that represents this
condition.

d. Solve this model including all constraints listed in parts a, b and c above.



6. Untel

Microprocessor manufacturer Untel has $21.0 million available next year to
renovate old plants, $14.0 million the year after that, and $17.5 million the year
after that. There are six different plants that are candidates for renovation. Each
would require funds in each of the next 3 years. Their dollar requirements and the
amount of extra production Untel would get from each plant’s renovation are
estimated at:

Funds required for renovation ($mil.) Added Production
Plant Year 1 Year 2 Year 3 (Units/year)
Auburn 4.0 2.0 7.8 40,000
Big Sur 4.9 7.1 7.0 60,000
Carmel 12.0 4.0 5.0 105,000
Dunsmuir 4.0 3.0 3.6 40,000
Eureka 10.4 2.0 8.0 80,000
Fresno 2.0 1.0 1.8 30,000

Because of shared resources, the Dunsmuir plant can only be renovated if the
Eureka plant is renovated and the Auburn plant is not.

a. Formulate an integer programming model to determine which plants should
be renovated to maximize the total amount of production that will be added.

b. Solve this model on the computer. Which plants are recommended for
renovation?



7. ChargerX Corp.

ChargerX Corp. makes battery packs for electric cars in three sizes: 1 kilowatt-hour
(kwh), 1.5 kwh, and 2.0 kwh. Production of each one requires time in three different
operations, as follows:

Hours required per pack
Operation 1 kwh pack 1.5 kwh pack 2 kwh pack
Plating 2.25 4.50 3.00
Chemical treatment 3.00 1.50 3.75
Assembly 0.375 0.375 0.375

There are 675 hours available for plating, 525 for chemical treatment, and 75 for
assembly. The profit contribution from each 1 kwh pack is $25, $28 from each 1.5
kwh pack, and $30 from each 2 kwh pack. Setting up a production line for the 1 kwh
pack costs $500, for the 1.5 kwh pack costs $690, and for the 2 kwh pack costs $750.

a. Formulate an integer programming model to determine how much of each
product to make to maximize total profit contribution minus setup costs.

b. Solve this model on the computer. For which products is a production line
supposed to be set up?



8. Lemon Inc.

Lemon Inc. is planning to begin manufacturing two types of smart watches,
basic and deluxe, on the same product line (meaning that they cannot both be
produced simultaneously). The cost required to set up the production line to
produce the basic watch is $6,000 and the cost required to set up the production
line for the deluxe watch is $8,500. Manufacturing costs are $25 for each basic
watch and $40 for each deluxe watch. Lemon Inc. makes a decision at the end of the
week as to which product will be manufactured on the product line the following
week.

If the production line for basic watches is set up, 10,000 basic watches must
be made. Similarly, if the deluxe product line is open, 6,000 deluxe watches must be
made.

Use the following decision variable definitions:


xB=the number of basic smart watches to produce next week
xD=the number of deluxe smart watches to produce next week
sB=1 if the production line is set up to produce the basic smart watch; 0 if
otherwise
sD=1 if the production line is set up to produce the deluxe smart watch; 0 if
otherwise

Formulate a model to minimize Lemon Inc’s cost of production for next week
and solve it using the computer. How much of each product should Lemon produce?



9. Tom’s Power Tools

A Tom’s Power Tools has five plants in the Midwest. Management is
considering starting to build drills and circular saws at these locations. The total
number of drills and saws that could be made at each plant and the total cost of
manufacturing them at each plant are as follows:

Plant Cost ($ Millions) Drills Circular Saws
(units in 1,000s) (units in 1,000s)
1. St. Louis 25 500 300
2. Cleveland 35 800 400
3. Detroit 35 400 800
4. Indianapolis 40 900 600
5. Omaha 18 200 300

The projected needs are for total capacities of 900,000 drills and 900,000
circular saws. Management wants to determine which plants to build drills and
circular saws at to meet projected manufacturing needs and, at the same time,
minimize the total cost.

a. Formulate an integer program that could be used to determine the optimal
solution that minimizes cost while still meeting manufacturing needs.

b. Solve this model using the computer. Which tools should be built in which
plants?



10. West Coast Flowers

West Coast Flowers Company has distribution centers in ten cities. It wants to set
up training facilities in some of the cities to run courses for the distribution center
workers. But it wants to make sure to locate them so that every distribution center
is within one half-day drive (150 miles) of a training facility. The distribution
centers and the distances between them are:

Chula Ocean- Santa Oxnard Santa King Santa Daly Healds- Willits
Vista side Monica Maria City Cruz City burg
Chula Vista 0 45 141 188 289 401 486 554 628 696
Oceanside 0 96 143 244 356 441 509 583 651
Santa Monica 0 47 148 260 345 413 487 555
Oxnard 0 101 213 298 366 440 508
Santa Maria 0 112 197 265 339 407
King City 0 85 153 227 295
Santa Cruz 0 68 142 211
Daly City 0 74 143
Healdsburg 0 69
Willits 0

a. Formulate an integer program that could be used to determine the minimum
number of training facilities and where to put them.

b. Solve this model using the computer.

c. If West Coast follows the computer solution, which distribution centers
would be within a half-day’s drive of more than one training facility?



11. Ramiro Systems

Ramiro Systems designs and services complex computer systems for large
companies. Ramiro has divided the U.S. into six regions, shown below with the
number of systems Ramiro services in each region:














Ramiro has just appointed two Technical Experts to provide field support to
installations. One Technical Expert can cover the installations in two adjacent
regions, except that no TE can cover both the Pacific and Southwest regions because
of the great distances involved. Ramiro wants to know exactly which two pairs of
regions to assign a TE to so that between the TEs they cover the maximum number
of installations. They could figure this out by hand, but they want to figure out an
automatic way to do it so they can continue to apply the method as the number of
regions and installations grows.

a. Formulate an integer program that could be used to determine which pairs of
regions to assign the TEs to.

b. Solve this model using the computer. Which territories does the solution
recommend for the Technical Experts?

c. How would the solution change if one TE could cover both the Pacific and
Southwest regions?



12. Amanda Brown

Amanda Brown is trying to plan courses she must take for a certificate in Truly
Excellent Penmanship. Two different universities offer courses that qualify; details
and further requirements are below.

Course Cost Meets Meets University
# (in $) calligraphy cursive
requirement? requirement?
1 50 Yes No Alabama
2 35 No No Alabama
3 15 No Yes Alabama
4 20 Yes Yes Alabama
5 60 Yes No Alabama
6 70 No No BC
7 25 No Yes BC
8 45 No No BC
9 65 Yes No BC
10 15 No Yes BC

• She must take at least one class that satisfies the calligraphy requirement.
• She must take exactly two classes that satisfy the cursive requirement.
• If she takes class 4 she must take class 3.
• If she takes class 7 or 8 (or both) she must take class 10.
• If she does not take class 2 she must take class 1 or 5 (or both).
• If she takes any classes at University A she is assessed a $200 registration fee,
and if she takes any classes at University B she is assessed a $100 registration
fee.
• If she takes any classes at University B she must take at least two.

a. Formulate an integer program to help Amanda minimize the cost of obtaining her
certificate. Be sure to define all decision variables and include the objective
function and all constraints.

b. Solve this problem with the computer. What classes does the solution
recommend?
Integer Programming Problem Solutions

1. Carroll Inc.

Integer
Solution Relaxation
Solution

Rounded
down
solution

c. The optimal solution to the LP Relaxation is given by x1 = 1.43, x2 = 4.29 with


an objective function value of 41.47. Rounding down gives the feasible
integer solution x1 = 1, x2 = 4. Its objective function value is 37.

d. The optimal solution is given by x1 = 0, x2 = 5. Its objective function value is
40. This is not the same solution as that found by rounding down. It
provides a 3 unit increase in the value of the objective function.


2. Okoye Development

a. X1 = the number of one-bedroom apartments to build
X2 = the number of two-bedroom apartments to build

MAX Z = 5,000X1 + 7,500X2
Subject to:
141,000X1 + 200,000X2 ≤ 1,000,000
8X1 + 16X1 ≤ 70
X1 ≤ 5
X1, X2 ≥ 0 and integer
b. The solution recommends building 4 one-bedroom and 2 two-bedroom
units:

















3. Subramaniam Construction

a. Xi = the number of cut patterns of type i to use, for i = A-G

Minimize Number of Beams Used Z = XA + XB + XC + XD + XE + XF + XG
Subject to:
(1) 6XA + 2XC + 1XE + 1XF + 4XG ≥ 5
(2) 4XB + 1XD + 3XE + 2XF ≥ 10
(3) 2XC + 2XD + 1XF + 1XG ≥ 20
(4) All Xi ≥ 0

b. The program recommends 1 of cut pattern C, 8 of D, 1 of F, and 1 of G.













c. This can be found by eliminating or deactivating the integer constraint on
the decision variables. It results in fractional values for the decision
variables, which is impossible in practice:



















d. The only change is in the objective function:

Minimize Amount of Waste Z = 2XA + 0XB + 0XC + 1XD + 2XE + 0XF + 1XG

The solution produces zero waste. However, it requires production of many
beams that will not be used until later:


4. M&Ms Investments Capital Budgeting

a. x4+x5=1

b. x1+x3+x5=2

c. x2 = x3

d. 2 – (x2 + x3) ≥ 2x4



e. x2+(1-x3) ≥2x5


5. David Inc.

a. xi=1 if project i=1-6 is chosen, 0 otherwise



Maximize NPV=3,000x1+6,000x2+2,000x3+2,500x4+12,000x5+10,000x6
Subject to:

2,000x1+2,500x2+1,000x3+500x4+10,000x5+8,000x6≤12,500
4,000x1+4,500x2+950x3+1,000x4+1,000x5+600x6 ≤10,000
2,000x1+3,000x2+4,000x3+2,500x4+3,500x5+1,500x6≤8,550
All xi are binary

b. x1+x2≤1

c. x5-x4=0

d. Computer Solution:
















David Inc. should choose to invest in building a new warehouse, purchasing
equipment, and market research.



6. Untel

a. xi = 1 if project i is chosen, 0 otherwise, for i=a-f (a=Auburn, b=Big Sur, etc.)

Maximize Added Production = 40,000xa + 60,000xb + 105,000xc + 40,000xd
+ 80,000xe + 30,000xf

Subject to:

4.0xa + 4.9xb + 12.0xc + 4.0xd + 10.4xe + 2.0xf <= 21.0
2.0xa + 7.1xb + 4.0xc + 3.0xd + 2.0xe + 1.0xf <= 14.0
7.8xa + 7.0xb + 5.0xc + 3.6xd + 8.0xe + 1.8xf <= 17.5
xe + (1-xa) >= 2xd
All xi are binary


b. Computer Solution:



The plants recommended for renovation are Big Sur, Carmel, and Fresno.

7. ChargerX Corp.

a. xi = number of battery packs of type i to produce, i=1-3, 1=1kwh,
2=1.5kwh, 3=2kwh
yi = 1 if production is set up to produce battery packs of type I; 0 otherwise

Maximize Profits: 25x1+ 28x2+ 30x3 – 500y1 – 690y2 – 750y3

Subject to:
(2.25x1) + (4.50x2) + (3.00x3) <= 675
(3.00x1) +(1.50x2) + (3.75x3) <= 525
(0.375x1) + (0.375x2) + (0.375x3) <= 75
x1 <= 175yi
x2 <= 150y2
x3 <= 140y3
All xi ≥ 0
All yi are binary

Note: The RHS numbers for the setup constraints could be anything so big
that it doesn’t restrict production if a line is set up. For example, if a production line
is set up for the 1 kwh pack, the most that one could produce given the resources
available is 175 units: even devoting all 525 hours available for chemical treatment,
ChargerX could make no more that 175 packs (525/3.00 = 175). Any larger number
would also work in this constraint.


b. Computer Solution:





Production lines should be set up for the 1 kwh and 1.5 kwh pack, but not the
2 kwh pack.










8. Lemon Inc.

xB=the number of basic smart watches to produce next week
xD=the number of deluxe smart watches to produce next week
sB=1 if the production line is set up to produce the basic smart watch; 0 if
otherwise
sD=1 if the production line is set up to product the deluxe smart watch; 0 if
otherwise

Minimize Cost=25xB+40xD+6000sB+8500sD
Subject to:
xB=10,000sB
xD=6,000sD
sB+sD=1
xB,xD≥0 and integer
sB,sD≥0 and binary



Next week, Lemon Inc. should produce 6,000 deluxe smart watches.



9. Tom’s Power Tools

a. xi=1 if plant i=1-5 is chosen to start building drills and circular saws,
0 otherwise

Minimize Cost Z=25x1+35x2+35x3+40x4+20x5

Subject to:
500x1+800x2+400x3+900x4+200x5≥900
300x1+400x2+800x3+600x4+300x5≥900
All xi ≥0 and binary


b. Computer Solution:



They should start to build drills and saws in the Indianapolis and Omaha plants.



10. West Coast Flowers

a. xi = 1 if training facility opened at location i; 0 otherwise, for i=1-10
(1=Chula Vista, 2=Oceanside, etc.)

Minimize Training Facilities: x1 + x2 + x3 + x4 + x5 + x6 + x7 + x8 + x9 + x10

Subject to:
Chula Vista: x1 + x2 + x3 >= 1
Oceanside: x1 + x2 + x3 + x4 >= 1
Santa Monica: x1 + x2 + x3 + x4 + x5 >= 1
Oxnard: x2 + x3 + x4 + x5 >= 1
Santa Maria: x3 + x4 + x5 + x6 >= 1
King City: x5 + x6 + x7 >= 1
Santa Cruz: x6 + x7 + x8 + x9 >= 1
Daly City: x7 + x8 + x9 + x10 >= 1
Healdsburg: x7 + x8 + x9 + x10 >= 1 (Duplicate; OK to omit)
Willits: x8 + x9 + x10 >= 1
All xi are binary



b. Computer Solution:



c. According to the solution, Santa Cruz, Daly City, and Healdsburg, are
within a half-day drive of more than one training facility.



11. Ramiro Systems

a. xij = 1 if a Technical Expert is assigned to regions i and j, 0 otherwise, for ij=
• PR (Pacific and Rocky Mountain)
• RM (Rocky Mountain and Midwest)
• RSW (Rocky Mountain and Southwest)
• MN (Midwest and Northeast)
• MSE (Midwest and Southeast)
• MSW (Midwest and Southwest)
• NSE (Northeast and Southeast), and
• SWSE (Southwest and Southeast)

MAX Z = 46xPR + 44xRM + 35x1RSW + 67xMN + 53xMSE + 51xMSW + 60xNSE + 44xSWSE

Subject to:
xPR + xRM + xRSW + xMN + xMSE + xMSW + xNSE + xSWSE <= 2
xPR <= 1
xPR + xRM + xRSW <= 1
xRM + xMN + xMSE + xMSW <= 1
xMN + xNSE <= 1
xRSW + xMSW + xSWSE <= 1
xMSE + xNSE + XSWSE<= 1
All xij are binary

b.



The solution recommends assigning one TE to the Pacific/Rocky Mountain
region and the other to the Midwest/Northeast region.

c. This adds a new decision variable (xPSW) and changes the objective function
and the first, second, and sixth constraints:

MAX Z = 46xPR + 53xPSW + 44xRM + 35x1RSW + 67xMN + 53xMSE + 51xMSW +
60xNSE + 44xSWSE

Subject to:
xPR + xPSW + xRM + xRSW + xMN + xMSE + xMSW + xNSE + xSWSE <= 2
xPR + xPSW <= 1
xPR + xRM + xRSW <= 1
xRM + xMN + xMSE + xMSW <= 1
xMN + xNSE <= 1
xRSW + xMSW + xSWSE + xPSW <= 1
xMSE + xNSE + xSWSE<= 1
All xij are binary





















In the solution to this modified version of the problem, a TE is to be assigned to the
Pacific/Southwest region instead of the Pacific/Rocky Mountain.



12. Amanda Brown

a. Xi = 1 if she takes course i, 0 otherwise, for i = 1-10
Yi = 1 if she takes any classes at University i, 0 otherwise, for i = A, B

MIN Z = 50X1 + 35X2 +15X3 +20X4 +60X5 +70X6 +25X7 +45X8 +65X9
+15X10 + 200YA + 100 YB

S.T.
X1 + X4 + X5 + X9 ≥ 1
X3 + X4 + X7 + X10 = 2
X4 ≤ X3
X7 + X8 ≤ 2X10
(1 – X2) ≤ X1 + X5
X1 + X2 + X3 + X4 + X5 ≤ 5YA
X6 + X7 + X8 + X9 + X10 ≤ 5YB
2YB ≤ X6 + X7 + X8 + X9 + X10
All Xi, Yi are binary



b. Computer solution:



It recommends she take classes 2, 3, and 4.

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