Integer Programming
Prepared By:
Dr. Manuj Madan,
CBS, Chitkara University, Pb.
Types of Integer Linear Programming Models
If all variables must be integer, we have an all-integer linear program.
If some, but not all, variables must be integer, we have a mixed-integer
linear program.
In many applications of integer linear programming, one or more
integer variables are required to equal either 0 or 1. Such variables are
called 0-1 or binary variables.
If all variables are 0-1 variables, we have a 0-1 integer linear program.
Applications Involving 0 -1 Variables
- Capital Budgeting
The Ice-Cold Refrigerator Company is considering investing in several
projects that have varying capital requirements over the next four
years. Faced with limited capital each year, management would like to
select the most profitable projects. The estimated net present
value for each project, the capital requirements, and the available
capital over the four-year period are shown in figure on next page
Applications Involving 0 -1 Variables
- Capital Budgeting
Applications Involving 0 -1 Variables
- Capital Budgeting
Applications Involving 0 -1 Variables (cont.) –
Fixed Cost
In many applications, the cost of production has two components: a
setup cost, which is a fixed cost, and a variable cost, which is directly
related to the production quantity.
The use of 0-1 variables makes inclusion of the setup cost possible in a
model for a production application.
Applications Involving 0 -1 Variables (cont.) –
fixed cost
Applications Involving 0 -1 Variables (cont.) –
fixed cost
Applications Involving 0 -1 Variables (cont.)
– fixed cost
Applications Involving 0 -1 Variables (cont.)
– fixed cost
Applications Involving 0 -1 Variables (cont.)
– fixed cost
Applications Involving 0 -1 Variables
- Distribution System Design (cont.)
Applications Involving 0 -1 Variables
- Distribution System Design (cont.)
SHIPPING COST PER UNIT
Applications Involving 0 -1 Variables
- Distribution System Design (cont.)
Applications Involving 0 -1 Variables
- Distribution System Design (cont.)
PERT /CPM example
Prepared By:
Dr. Manuj Madan,
CBS, Chitkara University, Pb.
List of Activities for a shopping centre project
PROJECT NETWORK WITH LATEST START
AND LATEST FINISH TIMES SHOWN IN EACH NODE
ACTIVITY SCHEDULE FOR
SHOPPING CENTRE PROJECT
Summary of the PERT/CPM Critical Path Procedure
Step 1. Develop a list of the activities that make up the project.
Step 2. Determine the immediate predecessor(s) for each activity in the project.
Step 3. Estimate the completion time for each activity.
Step 4. Draw a project network depicting the activities and immediate predecessors listed in steps 1 and 2.
Step 5. Use the project network and the activity time estimates to determine the earliest start and the earliest
finish time for each activity by making a forward pass through the network. The earliest finish time for the last
activity in the project identifies the total time required to complete the project.
Step 6. Use the project completion time identified in step 5 as the latest finish time for the last activity and
make a backward pass through the network to identify the latest start and latest finish time for each activity.
Step 7. Use the difference between the latest start time and the earliest start time for each activity to
determine the slack for each activity.
Step 8. Find the activities with zero slack; these are the critical activities.
Step 9. Use the information from steps 5 and 6 to develop the activity schedule for the project.
