IE400 - Study Set 2 Solutions

March 1, 2024


1, if truck k serves customer j,


1) a) Let xkj = and ykj denote the amount of goods transferred
0, otherwise.


P7 P20
from truck k to customer j. We minimize k=1 j=1 qk xkj , total operating cost. Demand
P7 P20
constraint: k=1 ykj ≥ dj for each j. Capacity constraint: j=1 ykj ≤ Ck for each k. Link of x

and y: ykj ≤ Ck xkj .

P7 P20
min k=1 j=1 qk xkj
P7
s.t. k=1 ykj ≥ dj , ∀j = 1, . . . , 20,
P20
j=1 xkj ≤ Ck , ∀k = 1, . . . , 7,

ykj ≤ Ck xkj , ∀k = 1, . . . , 7, ∀j = 1, . . . , 20,

ykj ≥ 0, ∀k = 1, . . . , 7, ∀j = 1, . . . , 20,

xkj ∈ {0, 1} ∀k = 1, . . . , 7, ∀j = 1, . . . , 20.

b) Include the following constraints to the model above:

• xk1 + xk7 ≤ 1 for all k = 1, . . . , 7,

• xk2 = xk(12) for all k = 1, . . . , 7,

• xk4 ≤ xk(19) + xk(20) for all k = 1, . . . , 7,

• Define y a switch variable. x45 + x46 + x47 ≥ 2 − 2y and x4(11) + x4(12) + x4(13) + x4(14) ≤

3 + (1 − y).

Pn
2) Suppose we have M = dk unmanufactured
k=1  rolls. Let xik be the amount of length lk rolls cut
1, if roll i is used,


from the ith unmanufactured roll and yi = We minimize the number of used
0, otherwise.


PM PM
rolls: i=1 yi . Demand constraints: i=1 xik ≥ dk for each k. Total length and link constraints:

1
 Pn
k=1 lk xik ≤ lyi for all i.

PM
min i=1 yi
PM
s.t. i=1 xik ≥ dk , ∀k = 1, . . . , n
Pn
k=1 lk xik ≤ lyi , ∀i = 1, . . . , M,

xik ≥ 0 and integer, ∀i = 1, . . . , M, ∀k = 1, . . . , n,

yi ∈ {0, 1}, ∀i = 1, . . . , M.

3) Let x be the amount invested and y be the amount taken as debt (in millions). We maximize NPV:

0.5y − 0.1x. Investment constraints: x ≤ 1. Investment cannot exceed capital plus debt: x ≤ 0.8 + y.

The relation between debt and investment: y ≤ 0.4x. Then

max −0.1x + 0.5y

s.t. x ≤ 1,

x − y ≤ 0.8,

−0.4x + y ≤ 0,

x, y ≥ 0.

We convert it into standard form an put it in the Simplex tableau:

 
z x y s1 s2 s3 RHS
 
 
z  1 0.1 −0.5 0 0 0 0 

 
s1 
 0 1 0 1 0 0 1 

 
s2  0 1 −1 0 1 0 0.8
 

 
s3 0 −0.4 1 0 0 1 0

y is the entering varialbe and s3 is the leaving variable by ratio test.

 
z x y s1 s2 s3 RHS
 
 
z  1 −0.1 0 0 0 0.5 0 

 
s1 
 0 1 0 1 0 0 1 

 
s2  0 0.6 0 0 1 1 0.8
 

 
y 0 −0.4 1 0 0 1 0

2
 x enters and s1 leaves.
 
z x y s1 s2 s3 RHS
 
 
z  1 0 0 0.1 0 0.5 0.1 

 
x  0 1 0 1 0 0 1 

 
s2  0 0 0 −0.6 1 1 0.2
 

 
y 0 0 1 0.4 0 1 0.4

Current table is optimal. It is recommended to invest 1 millon TL and 400000TL to debt with 0.1

NPV.

4) For simplicity, assume that the tableau is in canonical form for all cases:

a) A < 0, B = 0, C any, D ≥ 0, E = 1, F any.

b) A > 0, B = 0, C ≤ 0, D ≥ 0, E = 1, F any.

c) A any, B = 0, C any, D = 0, E = 1, F any.

5) a) The modified LP is after changing to maximum

max x 1 + x 2 − M a1 − M a2

s.t. x1 − x2 − x3 + a1 = 1,

−x1 + x2 + 2x3 − x4 + a2 = 1,

x1 , x2 , x3 , x4 , a1 , a2 ≥ 0.

The Simplex tableau is as follows:

 
z x1 x2 x3 x4 a1 a2 RHS
 
 
z  1 −1 −1 0 0 M M 0 

 
a1  0 1 −1 −1 0 1 0 1
 

 
a2 0 −1 1 2 −1 0 1 1

b) We first put the tableau in canonical form

 
z x1 x2 x3 x4 a1 a2 RHS
 
 
z  1 −1 −1 −M M 0 0 −2M 

 
a1  0 1 −1 −1 0 1 0 1 
 
 
a2 0 −1 1 2 −1 0 1 1

3
 It is not optimal. x3 is entering and a2 is leaving. We can remove the column for a2 :

 
z x1 x2 x3 x4 a1 RHS
 
 
z  1 −1 −1 −M M 0 −2M 

 
a1  0 1 −1 −1 0 1 1 
 
 
x3 0 −1 1 2 −1 0 1

We put it in canonical form

 
z x1 x2 x3 x4 a1 RHS
 
 
z  1 −0.5M − 1 0.5M − 1 0 0.5M 0 −1.5M 

 
a1  0 0.5 −0.5 0 −0.5 1 1.5 
 
 
x3 0 −0.5 0.5 1 −0.5 0 0.5

x1 leaves, a1 enters we remove column of a1 :

 
z x1 x2 x3 x4 RHS
 
 
z  1 −0.5M − 1 0.5M − 1 0 0.5M −1.5M 

 
x1  0 0.5 −0.5 0 −0.5 1.5 
 
 
x3 0 −0.5 0.5 1 −0.5 0.5

We put the table in canonical form:

 
z x1 x2 x3 x4 RHS
 
 
z  1 0 −2 0 −1 3 

 
x1  0 1 −1 0 −1 3
 

 
x3 0 0 0 1 −1 2

It is not optimal. x2 enters but there are no positive entries below x2 . Modified LP is unbounded.

c) All artificial variables are set to 0 and the modified problem is unbounded, then the original LP

is unbounded.