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Lingo Model

The document outlines a purchasing plan problem implemented using LINGO, focusing on minimizing costs associated with purchasing quantities over a specified number of months. It includes an integer programming model to manage demand satisfaction and order placement, as well as a shortest path model to calculate costs and flow. The final section reports the optimal purchasing plan and total costs based on the chosen model.

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houtarou28042000
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1 views2 pages

Lingo Model

The document outlines a purchasing plan problem implemented using LINGO, focusing on minimizing costs associated with purchasing quantities over a specified number of months. It includes an integer programming model to manage demand satisfaction and order placement, as well as a shortest path model to calculate costs and flow. The final section reports the optimal purchasing plan and total costs based on the chosen model.

Uploaded by

houtarou28042000
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as TXT, PDF, TXT or read online on Scribd
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MODEL:

! Purchasing Plan Problem - LINGO Implementation;

SETS:
MONTH /1..n/: DEMAND, PRICE; ! Months, demand and price for each month;
PAIR(MONTH, MONTH) | &1 #LE# &2: X; ! Define purchase quantity variables X(i,j);
ARC(MONTH, MONTH) | &1 #LE# &2: COST; ! Arcs for the network model;
END

DATA:
n = 6; ! Number of months (example value);

! Example data - replace with actual values;


DEMAND = 100 120 80 140 110 90; ! Monthly demands;
PRICE = 10 12 9 11 13 8; ! Unit purchase prices;
s = 500; ! Setup cost;
h = 2; ! Holding cost per unit per month;
END

! IP Model;
SUBMODEL IP_MODEL:
SETS:
MONTH: Y; ! Y(i) = 1 if purchase is made in month i, 0 otherwise;
END

! Objective function: minimize total cost;


MIN = @SUM(MONTH(i): s * Y(i)) +
@SUM(PAIR(i,j): PRICE(i) * X(i,j)) +
@SUM(PAIR(i,j) | i #LT# j: h * (j - i) * X(i,j));

! Demand satisfaction constraints;


@FOR(MONTH(j):
@SUM(PAIR(i,j): X(i,j)) = DEMAND(j)
);

! Order placement constraints;


@FOR(MONTH(i):
@SUM(PAIR(i,j): X(i,j)) <= (@SUM(MONTH(k) | k #GE# i: DEMAND(k))) * Y(i)
);

! Binary constraints;
@FOR(MONTH(i): @BIN(Y(i)));

! Non-negativity constraints;
@FOR(PAIR(i,j): X(i,j) >= 0);
ENDSUBMODEL

! Shortest Path Model;


SUBMODEL SHORTEST_PATH:
SETS:
NODE /0..n/: ; ! Nodes representing end of months (0 = start);
ARC_SP(NODE, NODE) | &1 #LT# &2: FLOW, ARC_COST; ! Arcs for the network;
END

! Calculate arc costs;


@FOR(ARC_SP(i,j) | i #GT# 0:
ARC_COST(i,j) = s + PRICE(i) *
@SUM(MONTH(t) | t #GE# i #AND# t #LE# j: DEMAND(t)) +
h * @SUM(MONTH(t) | t #GT# i #AND# t #LE# j: (t - i) * DEMAND(t))
);

@FOR(ARC_SP(0,j):
ARC_COST(0,j) = s + PRICE(j) * DEMAND(j)
);

! Objective: minimize total cost;


MIN = @SUM(ARC_SP(i,j): ARC_COST(i,j) * FLOW(i,j));

! Flow conservation constraints;


! Node 0 (start) has net outflow of 1;
@SUM(ARC_SP(0,j): FLOW(0,j)) = 1;

! Node n (end) has net inflow of 1;


@SUM(ARC_SP(i,n): FLOW(i,n)) = 1;

! All other nodes have balanced flow;


@FOR(NODE(k) | k #GT# 0 #AND# k #LT# n:
@SUM(ARC_SP(i,k): FLOW(i,k)) = @SUM(ARC_SP(k,j): FLOW(k,j))
);

! Binary flow variables;


@FOR(ARC_SP(i,j): @BIN(FLOW(i,j)));
ENDSUBMODEL

! Select which model to solve;


!@SOLVE(IP_MODEL);
@SOLVE(SHORTEST_PATH);

! Reporting section;
CALC:
@WRITE('Optimal Purchasing Plan:', @NEWLINE(1));
@WRITE('Month | Purchase Quantity | Total Cost', @NEWLINE(1));
@WRITE('------------------------------------------', @NEWLINE(1));

@IF(@POINTERS(IP_MODEL) #GT# 0) THEN


@FOR(MONTH(i) | Y(i) #GT# 0.5:
@FORMAT('Month %2d: %10.2f units, Cost = $%10.2f', i,
@SUM(PAIR(i,j): X(i,j)),
s + @SUM(PAIR(i,j): PRICE(i) * X(i,j)));
@WRITE(@FORMAT, @NEWLINE(1));
);
@ELSE
@FOR(ARC_SP(i,j) | FLOW(i,j) #GT# 0.5 #AND# i #GT# 0:
@FORMAT('Month %2d: Purchase for months %d to %d, Cost = $%10.2f',
i, i, j, ARC_COST(i,j));
@WRITE(@FORMAT, @NEWLINE(1));
);
@ENDIF

@WRITE('------------------------------------------', @NEWLINE(1));
@WRITE('Total cost: $', @GET(OBJECTIVE));
ENDCALC

END

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