Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Management Science
Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Management Science
Spreadsheet Modeling & Decision Analysis: A Practical Introduction To Management Science
Cliff T. Ragsdale
Chapter 6
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Solving ILP Problems
When solving an LP relaxation, sometimes
you “get lucky” and obtain an integer feasible
solution.
This was the case in the original Blue Ridge
Hot Tubs problem in earlier chapters.
But what if we reduce the amount of labor
available to 1520 hours and the amount of
tubing to 2650 feet?
See file Fig6-2.xls
Bounds
The optimal solution to an LP relaxation of an ILP
problem gives us a bound on the optimal objective
function value.
For maximization problems, the optimal relaxed
objective function values is an upper bound on the
optimal integer value.
For minimization problems, the optimal relaxed
objective function values is a lower bound on the
optimal integer value.
Rounding
It is tempting to simply round a
fractional solution to the closest integer
solution.
In general, this does not work reliably:
– The rounded solution may be infeasible.
– The rounded solution may be suboptimal.
How Rounding Down Can Result
in an Infeasible Solution
X2
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optimal relaxed solution
infeasible solution obtained
by rounding down
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Branch-and-Bound
1, if X i 0
Yi i = 1, 2, 3
0, if X i 0
Defining the Constraints
Resource Constraints
2X1 + 3X2 + 6X3 <= 600 } machining
6X1 + 3X2 + 4X3 <= 300 } grinding
5X1 + 6X2 + 2X3 <= 400 } assembly
Binary Constraints
All Yi must be binary
Nonnegativity conditions
Xi >= 0, i = 1, 2, ..., 6
Is there a missing link?
Defining the Constraints (cont’d)
Consider,
X3 <= M3Y3
X3 >= 40 Y3
Quantity Discounts
Assume…
– If Blue Ridge Hot Tubs produces more
than 75 Aqua-Spas, it obtains discounts
that increase the unit profit to $375.
– If it produces more than 50 Hydro-
Luxes, the profit increases to $325.
Quantity Discount Model
MAX: 350X11 + 375X12 + 300X21 + 325X22
S.T.: 1X11 + 1X12 + 1X21 + 1X22 <= 200 } pumps
9X11 + 9X12 + 6X21 + 6X22 <= 1566 } labor
12X11+ 12X12+ 16X21+16X22 <= 2880 } tubing
X12<=M12Y1
X11>=75Y1
X22<=M22Y2
X21>=50Y2
Xij >= 0
Xij must be integers, Yi must be binary
A Contract Award Problem
B&G Construction has 4 building projects and
can purchase cement from 3 companies for the
following costs:
Side constraints:
– Co. 1 will not supply orders of less than 150 tons for any project
– Co. 2 can supply more than 200 tons to no more than one of the projects
– Co. 3 will accept only orders that total 200, 400, or 550 tons
Defining the Decision Variables
Yij binary
Defining the Constraints-II
Company 2 Side Constraints
X21<=200+250Y21
X22<=200+250Y22
X23<=200+250Y23
X24<=200+250Y24
Y21 + Y22 + Y23 + Y24 <= 1
Yij binary
Defining the Constraints-III
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The Branch-And-Bound Algorithm
Problem I MAX: 2X1 + 3X2
S.T. X1 + 3X2 <= 8.25
X1 <= 2
X1 >= 3
Problem II
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1 2 X1
The Branch-And-Bound Algorithm
Problem III MAX: 2X1 + 3X2
X1 <= 2
X2 <= 2
X1 <= 2
X2 >= 3
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Problem II
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1 2 X1
B&B Summary
Original Problem
X1=2.769
X2=1.826
Obj = 11.019 X1>=3
X1<=2
Problem II
Problem I
X1=2 X1=3
X2=2.083 X2=1.25
Obj = 10.25 Obj = 9.75
X2<=2 X2>=3