Month Demand Give an integer linear programming formulation for the problem of finding a production plan of minimum cost.
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1 1.9 Modem production A company A, producing a single model of modem, is planning the production for the next 4 months. The producing capacity is of 2500 units per month, at a cost of 7 Euro per unit. A second company B can be payed to produce extra units, at a cost of 9 Euro per unit, for a maximum of 700 units per month. Inventory can be used, at a cost of 1 Euro per month per unit. 70 units are stored at the beginning of the planning period, and 300 units must be stored at the end of the period. For technical reasons, the units must be produced in lots of, at least, 80 units. Sales forecasts for the next 4 months indicate the following demand Month Demand Give an integer linear programming formulation for the problem of finding a production plan of minimum cost. Discuss the variant where fixed charges f A, f B must be payed for each month where the production is active, in each of the two factories Hospital shifts We are to plan the shifts for a hospital department, so that the total number of nurses is minimized. Each nurse works for 5 consecutive days, and stays home for the next 2. The demand, in term of number of nurses, is Day Mo Tu We Th Fr Sa Su Demand Give an integer linear programming formulation for the problem Cash flow A company expects the following cash flow (in keuro) for the next 8 months Month inflow outflow May June July Dec At the beginning of the planning period (May), we have 100K Euro of cash. Money can be loaned from banks, with two options: 1) loan for 8 months, with 9% interest per month, or 2) Document prepared by L. Liberti, S. Bosio, S. Coniglio, and C. Iuliano. Translation to English by S. Coniglio 1
2 loan for 1 month, with 1.5% interest per month. For instance, with option 1, if 100 Euro are loaned at the beginning of May, 109 Euro must be given back at the end of December; with option 2, if 100 Euro are loaned at the beginning of month i, Euro must be given back at the begining of month (i + 1). No debt must be estabilished after the end of the planning period. A cash of 50k Euro is required at the end of the period. Give a linear programming formulation for the problem of minimizing the loaning cost. Discuss the variant where only one of the two loaning options can be chosen. Document prepared by L. Liberti, S. Bosio, S. Coniglio, and C. Iuliano. Translation to English by S. Coniglio 2
3 Solution 1.12 Modem production Sets J: production months Parameters d j : demand for month j c A : unit production cost for company A c B : unit production cost for company B m: unit inventory cost per month l: minimum lot size u A : maximum number of units in production per month for company A u B : maximum number of units in production per month for company B Variables x Aj : units of product produced in month j J by company A x Bj : units of product produced in month j J by company B y Aj : 1 if company A produces in month j J, 0 otherwise y Bj : 1 if company B produces in month j J, 0 otherwise z j : units in inventory in month j J Model 4 4 minc A x Aj + c B x Bj + m 4 j=1 j=1 j=0 s.t.x Aj + x Bj + z j 1 d j j J(demand) ly Aj x Aj u A y Aj (min lot size) ly Bj x Bj u B y Bj (min lot size) z j = z j 1 + x 1j + x 2j d j j J(inventory balance) x j, z j N j J z 0 = 70 z 4 = 300 y j {0, 1} j J z j Document prepared by L. Liberti, S. Bosio, S. Coniglio, and C. Iuliano. Translation to English by S. Coniglio 3
4 Observe that constraints (demand) are redundant, since they are implied by the (inventory balance) constaints and the nonnegativity of z j. For the variant, we introduce the additional term into the objective function. f A j=1 4 y Aj + f B 4 j=1 y Bj 1.13 Hospital shifts Let variables x 0, x 1, x 2, x 3, x 4, x 5, and x 6 denote the number of nurses whose shift begins, respectively, on Monday, Tuesday, Wednesday, Thursday, Friday, Saturday, and Sunday. We have the following model min (x 0 + x 1 + x 2 + x 3 + x 4 + x 5 + x 6 ) x 0 + x 3 + x 4 + x 5 + x 6 11 (Mo) x 0 + x 1 + x 4 + x 5 + x 6 9 (Tu) x 0 + x 1 + x 2 x 5 + x 6 7 (We) x 0 + x 1 + x 2 + x 3 + x 6 12 (Th) x 0 + x 1 + x 2 + x 3 + x 4 13 (Fr) x 1 + x 2 + x 3 + x 4 + x 5 8 (Sa) x 2 + x 3 + x 4 + x 5 + x 6 5 (Su) x 0, x 1, x 2, x 3, x 4, x 5, x 6 Z + We generalize the model as follows Sets J: days Parameters d: days for which a nurse works (5) w = J : days in a period (7) Variables x j : number of nurses working in day j J Document prepared by L. Liberti, S. Bosio, S. Coniglio, and C. Iuliano. Translation to English by S. Coniglio 4
5 Model min j=0 w 1 x j j=0 d 1 s.t. x mod(w+(i j),w) d i i J x j {0, 1} j J To assess the correctness, try to write the constraints for, e.g., j = 2 (We). We get j x mod(7+(2 j),7) 0 mod(7+2,7) = 2 1 mod(7+1,7) = 1 2 mod(7+0,7) = 0 3 mod(7-1,7) = 6 4 mod(7-2,7) = Cash flow Sets I = {1,...,8}: months Parameters e i : inflow at month i I u i : outflow at month i I Variables x: amount of money loaned at month 1 with option 1 y i : amount of money loaned at month i I \ {8} with option 2 z i : cash at month i I We cannot establish debts that are to be estinguished after month 8. Therefore, we define variable x only for month 1, and variables y i only for months {1,...,7}. Document prepared by L. Liberti, S. Bosio, S. Coniglio, and C. Iuliano. Translation to English by S. Coniglio 5
6 Model min 0.09x + s.t y i i=1 z i = z i 1 + y ( )y i 1 + e i u i i {2,...,6} z 1 = z 0 + x 1 + x + e 1 u 1 z 8 = z 7 x x 7 x 0.09x + e 8 u 8 z 0 = 80 z 8 50 x, y i 0 i I For the variant, we introduce the variable k and the constraints y i Mk, i {1,...,8} z M(1 k) where M is a large enough value, larger than the largest value that x, y i can take. Document prepared by L. Liberti, S. Bosio, S. Coniglio, and C. Iuliano. Translation to English by S. Coniglio 6
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