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Integer Programming Models

Types of Models
 
    


 
 

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The owner of a machine shop is planning to expand by


purchasing some new machines presses and lathes. The owner
has estimated that each press purchased will increase profit by
$100 per day and each lathe will increase profit by $150 daily.
The number of machines the owner can purchase is limited by
the cost of the machines and the available floor space in the
shop. The machine purchase prices and space requirements are
as follows:
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Integer Programming Model:


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] community council must decide which recreation
facilities to construct in its community. Four new
recreation facilities have been proposed a swimming
pool, a tennis center, an athletic field, and a
gymnasium. The council wants to construct facilities
that will maximize the expected daily usage by the
residents of the community, subject to land and cost
limitations. The expected daily usage and cost and
land requirements for each facility follow:
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The community has a $120,000 construction budget and 12


acres of land. Because the swimming pool and tennis center
must be built on the same part of the land parcel, however,
only one of these two facilities can be constructed. The
council wants to know which of the recreation facilities to
construct to maximize the expected daily usage.
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Integer Programming Model:


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‰ancy Smith has $250,000 to invest in three
alternative investments: condominiums, land, and
municipal bonds. She wants to invest in the
alternatives that will result in the greatest return on
investment after 1 year.

Each condominium costs $50,000 and will return a


profit of $9,000 if sold at the end of 1 year; each acre
of land costs $12,000 and will return a profit of $1,500
at the end of 1 year; and each municipal bond costs
$8,000 and will result in a return of $1,000 if sold at
the end of 1 year. In addition, there are only 4
condominiums, 15 acres of land, and 20 municipal
bonds available for purchase.
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Integer Programming Model:


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Integer Programming Graphical Solution

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Integer Programming Example
Graphical Solution of Maximization Model

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÷aximize profit = $7·1 + $6·2


subject to 2·1 + 3·2 ” 12 (wiring hours)
6·1 + 5·2 ” 30 (assembly hours)
·1, ·2 • 0 (nonnegative)
where
·1 = number of chandeliers produced
·2 = number of ceiling fans produced
 

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Optimal LP Solution
(·1 =3.75, ·2 = 1.5,
2± + + + Profit = $35.25)

2·1 + 3·2 ” 12
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0 35 Optimal solution to
0 1 6 integer programming
1 1 13 problem
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Table 11.1
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