Integer Programming for Manufacturing Optimization
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ScribdTranslationsInteger Programming for Manufacturing Optimization
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ScribdTranslationsOperational Research I
Integer Programming Task
Problem 1
A car manufacturer has five outdated plants: one in each of the
following states: Michigan, Ohio, and California, and two in New York. Management is
considering modernizing these plants to manufacture engine blocks and transmissions
for a new car model. The cost of modernizing each plant and the capacity
Manufacturing after modernization is as follows:
Cost Engine Blocks Transmissions
Plant (millions of dollars) (in thousands) (in thousands)
Michigan 25 500 300
New York 35 800 400
New York 35 400 800
Ohio 40 900 600
California 20 200 300
The projected needs are for total capacities of 900,000 blocks of
motor and 900,000 transmissions. Management wants to determine which plants
modernize to meet projected manufacturing needs and, at the same
time, minimize the total modernization cost.
a. Prepare a table that lists each possible option available for management.
As part of your table, indicate the total engine block capacity and the
transmission capacity for each possible option, if the option is feasible
based on the projected needs, and the total cost of modernization
for each option.
b. Based on your analysis from section a), what recommendation would you make to management?
c. Formulate a 0-1 integer programming model to be used to determine
the optimal solution to the modernization question faced by management.
d. Solve the model formulated in part c) to provide a
recommendation to management.
Problem 2
Northshore Bank is working to develop an efficient work program for tellers.
full-time and part-time. The program must provide an operation
efficient bank that includes appropriate customer service, breaks from the
employees, etc. The bank is open on Fridays from 9:00 a.m. to 7:00 p.m. The number of
cashiers necessary to provide adequate customer service during each hour
Operation is summarized here.
Number Number
Schedule of tellers Schedule of cashiers
9:00 a.m.–10:00 a.m. 6 2:00 p.m.–3:00 p.m. 6
10:00 a.m.–11:00 a.m. 4 3:00 p.m.–4:00 p.m. 4
11:00 a.m.–Noon 8 4:00 p.m.–5:00 p.m. 7
Noon–1:00 p.m. 10 5:00 p.m.–6:00 p.m. 6
1:00 p.m.–2:00 p.m. 9 6:00 p.m.–7:00 p.m. 6
Each full-time employee starts at the indicated time and works a shift of
4 hours, followed by an hour for lunch and then a 3-hour shift. The employees
Operational Research I
Part-time workers have a shift that starts at the indicated time. Considering the salary
and the incentives, full-time employees cost the bank $15 per hour
$105 per day) and part-time employees cost $8 per hour ($32 per day).
a. Formulate an integer programming model to be used for developing a
program that meets the service needs of customers at a cost
of minimum employees.
b. Solve the PL relaxation of your model from part a).
c. Calculate the optimal program for cashiers. Comment on the solution.
d. After reviewing the solution in item c), the bank manager realized
it was stated that some additional requirements should be specified. In
specifically, wants to ensure that a full-time employee is in
service at all times and that the staff consists of at least
five full-time employees. Review your model to incorporate these
additional requirements and find the optimal solution.
Problem 3
Roedel Electronics produces a variety of electrical components that include a
remote control for televisions and one for DVD players. Each controller
It consists of three sub-assemblies that Roedel manufactures: a base, a cartridge, and a keyboard.
Both controls use the same base sub-assembly, but different sub-
cartridge and keyboard assemblies.
The sales forecast from Roedel indicates that 7,000 TV controllers are needed.
5,000 DVD controllers to meet demand during the upcoming season
Christmas. Since Roedel has 500 hours of manufacturing time, consider
buy part or all sub-assemblies from external suppliers. If the company
it manufactures a sub-assembly in its plant, incurs a fixed assembly cost, as well as
at a variable manufacturing cost. The following table shows the assembly cost, the
manufacturing time by sub-assembly, the manufacturing cost per sub-
assembly and the cost of purchasing each of the sub-assemblies from a supplier
external:
Cost of Manufacturing Time
Subassembly assembly ($) per unit (min.) per unit ($) per unit ($)
Base 1000 0.90 0.40 0.65
TV cartridge 1200 2.20 2.90 3.45
DVD cartridge 1900 3.00 3.15 3.70
TV keyboard 1500 0.80 0.30 0.50
DVD keyboard 1500 1.00 0.55 0.70
a. Determine how many units of each sub-assembly Roedel should manufacture and
how many should be purchased. What are the manufacturing and purchase costs
associated with your recommendation?
b. Suppose Roedel is considering the purchase of new machinery for manufacturing
DVD cartridges. For the new machinery, the assembly cost is $3000; the
manufacturing time is 2.5 minutes per cartridge and the manufacturing cost
It is $2.60 per cartridge. Suppose that new machinery is purchased, determine
how many units of each sub-assembly should Roedel manufacture and how many
units of each sub-assembly must be purchased. What is the cost of
total manufacturing and purchase associated with your recommendation? Do you think that the
Should new machinery be purchased? Explain why.