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Nonlinear Programming Applications Overview

The document discusses nonlinear programming applications in areas such as control, inventory, resource allocation, and facility location. It covers discrete optimal control problems, production-inventory examples, stochastic resource allocation with chance constraints, and facility location challenges involving cost minimization. Each section provides a general formulation and key considerations for decision-making in these contexts.

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3 views2 pages

Nonlinear Programming Applications Overview

The document discusses nonlinear programming applications in areas such as control, inventory, resource allocation, and facility location. It covers discrete optimal control problems, production-inventory examples, stochastic resource allocation with chance constraints, and facility location challenges involving cost minimization. Each section provides a general formulation and key considerations for decision-making in these contexts.

Uploaded by

sanjuyadavmjp
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Classroom Lecture Notes

Nonlinear Programming: Applications in Control, Inventory,


Resource Allocation, and Facility Location

1. Discrete Optimal Control


Discrete optimal control problems involve making sequential decisions across multiple
time periods. The system evolves according to state-transition equations, and decisions
are made via control variables. The general formulation is:
State evolution: y■ = y■■■ + φ(y■■■, u■), for k = 1,…,K
Objective: Minimize A(y■, …, yK, u■, …, uK)
Constraints: y■ ∈ Y, u■ ∈ U, trajectory constraints ∈ D

2. Production-Inventory Example
This example illustrates discrete optimal control in a production setting. A company
produces items to satisfy known demand over K periods. Costs include inventory holding
and labor adjustment. The formulation is:
State variables: Inventory level (I■), labor force (L■)
Control variable: Change in labor force (u■)
Constraints: Production ≤ capacity, I■ ≥ 0, labor bounds
Objective: Minimize Σ (c■u■² + c■I■), balancing labor changes and inventory holding.

3. Stochastic Resource Allocation


In stochastic programming, uncertainty is modeled explicitly using chance constraints. For
example, production must meet random demand x with high probability:
Constraint: P(p < x + 5) ≤ 0.01
If x ~ N(µ, σ²), this leads to deterministic equivalent: p ≥ µ + z■.■■σ, where z■.■■ ≈ 2.33
is the 99% quantile.

4. Location of Facilities
Facility location problems involve determining optimal sites and assignments of demand
points. Costs may include fixed setup and distance-dependent terms, possibly nonlinear.
The general formulation is:
Decision variables: y■ ∈ {0,1} (facility open), x■■ ∈ {0,1} (assignment)
Objective: Minimize Σ F■y■ + Σ C■■x■■
Constraints: Each demand served by one facility; assignments only to open facilities.
Nonlinear extensions: costs depending on load, squared distances, or economies of scale.
5. Summary
1 Discrete optimal control provides a framework for sequential decision-making.
2 Production-inventory systems illustrate cost trade-offs between labor and inventory.
3 Stochastic resource allocation models uncertainty using chance constraints.
4 Facility location models combine fixed and variable costs, often requiring nonlinear
formulations.

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