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    Lab 8 Ip, DP, Ga: Integer Programming

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    Alex Ruta
    ABC manufacturing is considering setting up 4 production lines with different net present values (NPVs) and upfront cash investments. It can only set up one line per type and has $14,000 available. The document formulates this as an integer programming problem to determine which line(s) ABC should set up to maximize NPV, within the cash constraint. It then provides examples to modify the problem, such as limiting the number of lines, requiring certain lines to be set up together or not at the same time, and other logical constraints.

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    Lab 8 Ip, DP, Ga: Integer Programming

    Uploaded by

    Alex Ruta
    21 views3 pages
    ABC manufacturing is considering setting up 4 production lines with different net present values (NPVs) and upfront cash investments. It can only set up one line per type and has $14,000 available. The document formulates this as an integer programming problem to determine which line(s) ABC should set up to maximize NPV, within the cash constraint. It then provides examples to modify the problem, such as limiting the number of lines, requiring certain lines to be set up together or not at the same time, and other logical constraints.

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    ABC manufacturing is considering setting up 4 production lines with different net present values (NPVs) and upfront cash investments. It can only set up one line per type and has $14,000 available. The document formulates this as an integer programming problem to determine which line(s) ABC should set up to maximize NPV, within the cash constraint. It then provides examples to modify the problem, such as limiting the number of lines, requiring certain lines to be set up together or not at the same time, and other logical constraints.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    21 views3 pages

    Lab 8 Ip, DP, Ga: Integer Programming

    Uploaded by

    Alex Ruta
    ABC manufacturing is considering setting up 4 production lines with different net present values (NPVs) and upfront cash investments. It can only set up one line per type and has $14,000 available. The document formulates this as an integer programming problem to determine which line(s) ABC should set up to maximize NPV, within the cash constraint. It then provides examples to modify the problem, such as limiting the number of lines, requiring certain lines to be set up together or not at the same time, and other logical constraints.

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    CVL609 Civil Engineering Systems

    Ryerson University

    Lab 8 IP, DP, GA

    Integer Programming
    Capital Budgeting Example - ABC manufacturing Co. (example of binary variables)
    ABC manufacturing Co is considering in setting up 4 production lines with following net present
    value (NPV) payoff and upfront cash investment. It cannot setup eg. three line 1, only one can
    be setup for each line. ABC has $14,000 is available cash at present. Formulate an IP whose
    solution will tell ABC which lines it should set up to maximize NPV.
    NPV
    Upfront cash

    line 1
    16,000
    5,000

    line 2
    22,000
    7,000

    line 3
    12,000
    4,000

    line 4
    8,000
    3,000

    Example: Multiple Choice, Mutually Exclusive Constraints


    Modify above problem to:
    (a) ABC can invest in at most 2 lines

    (b) If ABC invests in line 2, they must also invest in line 1

    (c) If ABC invests in line2, they cannot invest in line 4 and vice versa

    CVL609 Civil Engineering Systems

    Ryerson University

    (d) Cannot invest in line 1 unless also invest in line 3 and 4.

    Dynamic Programming
    Characteristics of Dynamic Programming Applications
    Characteristic 1

    The problem can be divided into stages with a decision required at each stage.

    Characteristic 2

    Each stage has a number of states associated with it.

    By a state, we mean the information that is needed at any stage to make an optimal
    decision.

    Characteristic 3
    If the states for the problem have been classified into on of T stages, there must be a
    recursion that relates the cost or reward earned during stages t, t+1, ., T to the cost or
    reward earned from stages t+1, t+2, . T.

    Example - Equipment Replacement Problems

    Companies need to determine how long a machine should be utilized before trade in for a
    new one.

    Problems of this type are called equipment replacement problem


    Example
    An auto repair shop requires use of an engine analyzer. Analyzers are kept for 1, 2 or 3 years.
    Given that a new machine has just been purchased, the shop wants to determine a replacement
    policy that minimizes net costs for next 5 years. New analyzer cost = $1000
    mi = cost of maintaining an iith year old analyzer:

    m1 = $60, m2 = $80, m3 = $120

    si = salvage value for a ith year old analyzer:

    s1 = $800, s2 = $600, s3 = $500

    CVL609 Civil Engineering Systems

    Ryerson University

    Net cost = maintenance cost + replacement cost salvage value


    NETWORK EXAMPLE

    GENETIC ALGORITHM
    The problem here is
    Max Z = 2x1 + 3x2 - x12 - x22
    S.T.
    x 1 + x2 2
    x1, x2 0
    CODE
    clc;
    close all
    clear all;
    %Defining function
    lb = zeros(2,1);
    A = [1 1]; % Constraint
    b = 2; % RHS of constraint
    z = @(x) (-2*x(1) - 3*x(2) + x(1)^2 + x(2)^2); % Obj Function
    [x, fval] = ga(z,2, A, b, [],[], lb)

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