INTEGER PROGRAMMING

MODELS WITH GENERAL INTEGER VARIABLES

Harrision Electric Company produces two expensive
products that are popular with renovators of historic old
homes; ornate lamps and old fashioned ceiling fans.
Both lamps and ceiling fans require a two step
production process involving wiring and assembly time.
It takes 2 hours to wire each lamp and 3 hours to wire a
ceiling fan. Finally assembly of each lamp and fan
requires 6 & 5 hours respectively. The production
capability is such that only 12 hours of wiring time and
30 hours of assembly time are available. Each lamp
produced nets the firm $600 and each fan nets $700 in
profit.

GENERAL INTEGER EXAMPLE:
HARRISON ELECTRIC CO.
Produce 2 products (lamps and ceiling fans)
using 2 limited resources (wiring and
assembly time)
Decision: How many of each product to
make? (must be integers)

Objective: Maximize profit
DECISION VARIABLES
L = number of lamps to make
F = number of ceiling fans to make
Lamps
(per lamp)
Fans
(per fan)
Hours
Available
Profit
Contribution
$600 $700
Wiring Hours 2 hrs 3 hrs 12
Assembly Hours 6 hrs 5 hr 30
LP Model Summary
Max 600 L + 700 F ($ of profit)
Subject to the constraints:
2L + 3F < 12 (wiring hours)
6L + 5F < 30 (assembly hours)
L, F > 0
GRAPHICAL SOLUTION
SET COVERING PROBLEM

A set covering problem typically deal with trying to
identify the optimal set of locations to cover or to serve
a specified set of customers. Consider a case which
needs to build health care clinics to serve seven
sectors (named A to G) in a region. Each clinic can
serve sectors within a maximum radius of 30 minutes
driving time, and a sector may be served by more than
one clinic. Table in the next slide shows the time it
takes to travel between the seven sectors
SET COVERING PROBLEM (CONTD.)



WHAT IS THE MINIMUM
NUMBER OF CLINICS THAT
WOULD BE NEEDED, AND IN
WHICH SECTORS SHOULD
BE LOCATED
To
From
A B C D E F G
A 0 15 20 35 35 45 40
B 15 0 35 20 35 40 40
C 20 35 0 15 50 45 30
D 35 20 15 0 35 20 20
E 35 35 50 35 0 15 40
F 45 40 45 20 15 0 35
G 40 40 30 20 40 35 0
CASE STUDY
Hardgrave Machine Company produces computer
components at its factories in Cincinnati, Kansas
city, and Pittsburg. These factories have not been
able to keep up with demand for orders at
Hardgraves four warehouses in Detroit, Houston,
New York and Los Angeles. As a result, the firm has
decided to build a new factory to expand its
productive capacity. The two sites being considered
are Seattle and Birmingham. Both cities are
attractive in terms of labor supply, municipal
services, and ease of factory financing.


HARDGRAVE DEMAND AND SUPPLY DATA
Ware House Monthly
Demand
(units)
Production
Plant
Monthly
Supply
Cost to
Produce One
Unit
Detroit 10000 Cincinnati 15000 $48
Houston 12000 Kansas City 6000 $50
New York 15000 Pittsburgh 14000 $52
Los Angeles 9000
HARDGRAVE MACHINES SHIPPING COSTS
From To
Detroit Houston New York Los Angeles
Cincinnati $25 $55 $40 $60
Kansas City $35 $30 $50 $40
Pittsburgh $36 $45 $26 $66
Seattle $60 $38 $65 $27
Birmingham $35 $30 $41 $50
Estimated Production cost per unit at proposed plants
Seattle $53
Birmingham $49
SHIPPING AND PRODUCTION COSTS
From To Production
Detroit Houston New York Los Angeles Cost
Cincinnati $25 $55 $40 $60 $48
Kansas City $35 $30 $50 $40 $50
Pittsburgh $36 $45 $26 $66 $52
Seattle $60 $38 $65 $27 $53
Birmingham $35 $30 $41 $50 $49
CASE STUDY (CONTINUED)
In addition to these information, Hardgrave estimates that
monthly fixed cost of operating the proposed facility in
Seattle would be $400,000. The Birmingham plant would be
somewhat cheaper, due to lower cost of living at the
location. Hardgrave therefore estimates that the monthly
fixed cost of operating the proposed facility in Birmingham
would be $325000.
Note that the fixed costs at existing plants need not be considered here
because they will be incurred regardless of which new plant Hardgrave
decides to open.
Question: Which of the new locations, in combination with the
existing plants and warehouses, will yield the lowest cost?