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Mansci Chapter 7

This chapter introduces integer linear programming, which is an extension of linear programming where one or more variables must be integer values. Integer linear programming is important for two reasons - fractional values may not be permitted for variables and it provides more modeling flexibility through the use of 0-1 variables to model real-world problems. Some common applications of integer linear programming discussed are capital budgeting, fixed costs, distribution system design, bank location, and product design. As solution methods and computer speeds improve, the number of integer linear programming applications continues to grow rapidly.
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0% found this document useful (0 votes)
44 views1 page

Mansci Chapter 7

This chapter introduces integer linear programming, which is an extension of linear programming where one or more variables must be integer values. Integer linear programming is important for two reasons - fractional values may not be permitted for variables and it provides more modeling flexibility through the use of 0-1 variables to model real-world problems. Some common applications of integer linear programming discussed are capital budgeting, fixed costs, distribution system design, bank location, and product design. As solution methods and computer speeds improve, the number of integer linear programming applications continues to grow rapidly.
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SUMMARY GLOSSARY

0-1 integer linear program An all-integer or


In this chapter we introduced the mixed-integer linear program in which the
important extension of linear programming integer variables are only permitted to assume
referred to as integer linear programming. the values 0 or 1. Also called binary integer
The only difference between the integer program.
linear programming problems discussed in All-integer linear program An integer linear
this chapter and the linear programming program in which all variables are required to be
integer.
problems studied in previous chapters is
Capital budgeting problem A 0-1 integer
that one or more of the variables must be
programming problem that involves choosing
integer. If all variables must be integer, we which projects or activities provide the best
have an all-integer linear program. If some, investment return.
but not necessarily all, variables must be Conditional constraint A constraint involving
integer, we have a mixed-integer linear 0-1 variables that does not allow certain
program. Most integer programming variables to equal 1 unless certain other
applications involve 0-1, or binary, variables. variables are equal to 1.
Corequisite constraint A constraint requiring
Studying integer linear programming that two 0-1 variables be equal. Thus, they are
is important for two major reasons. First, both in or out of solution together.
integer linear programming may be helpful Distribution system design problem A
when fractional values for the variables are mixed-integer linear program in which the binary
integer variables usually represent sites selected
not permitted. Rounding a linear
for warehouses or plants and continuous
programming solution may not provide an
variables represent the amount shipped over
optimal integer solution; methods for finding
arcs in the distribution network.
optimal integer solutions are needed when Fixed cost problem A 0-1 mixed-integer
the economic consequences of rounding programming problem in which the binary
are significant. A second reason for variables represent whether an activity, such as
studying integer linear programming is the a production run, is undertaken (variable 5 1) or
increased modeling flexibility provided not (variable 5 0).
through the use of 0-1 variables. We Integer linear program A linear program with
showed how 0-1 variables could be used to the additional requirement that one or more of
the variables must be integer.
model important managerial considerations
k out of n alternatives constraint An extension
in capital budgeting, fixed cost, distribution
of the multiple-choice constraint. This constraint
system design, bank location, and product
requires that the sum of n 0-1 variables equal k.
design/market share applications. Location problem A 0-1 integer programming
problem in which the objective is to select the
The number of applications of
best locations to meet a stated objective.
integer linear programming continues to Variations of this problem (see the bank location
grow rapidly. This growth is due in part to problem in Section 7.3) are known as covering
the availability of good integer linear problems.
programming software packages. As LP Relaxation The linear program that results
researchers develop solution procedures from dropping the integer requirements for the
capable of solving larger integer linear variables in an integer linear program.
programs and as computer speed Mixed-integer linear program An integer linear
increases, a continuation of the growth of program in which some, but not necessarily all,
variables are required to be integer.
integer programming applications is
Multiple-choice constraint A constraint
expected.
requiring that the sum of two or more 0-1
variables equal 1. Thus, any feasible solution
makes a choice of which variable to set equal to
1.
Mutually exclusive constraint A constraint
requiring that the sum of two or more 0-1
variables be less than or equal to 1. Thus, if one
of the variables equals 1, the others must equal
0. However, all variables could equal 0.
Product design and market share
optimization problem Sometimes called the
share of choices problem, it involves choosing a
product design that maximizes the number of
consumers preferring it

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