Model Building

in
Mathematical Programming
Fourth Edition

H. PAUL WILLIAMS
Faculty of Mathematical Studies
University of Southampton

JOHN WILEY & SONS, LTD

Chichester • New York • Brisbane • Toronto • Singapore
Contents
Preface xi

PART 1 1
1 Introduction 3
1.1 The Concept of a Model 3
1.2 Mathematical Programming Models 5

2 Solving Mathematical Programming Models 10

2.1 Algorithms and Packages 10
2.2 Practical Considerations 12
2.3 Decision Support and Expert Systems 15
2.4 Constraint Logic Programming (CLP) 15

3 Building Linear Programming Models 17

3.1 The Importance of Linearity 17
3.2 Defining Objectives 19
3.3 Defining Constraints 25
3.4 How to Build a Good Model 32
3.5 The Use of Modelling Languages 36

4 Structured Linear Programming Models 39

4.1 Multiple Plant, Product, and Period Models 39
4.2 Decomposing a Large Model 48

5 Applications and Special Types of Mathematical Programming

Model 59
5.1 Typical Applications 59
5.2 Economic Models 65
5.3 Network Models 72
5.4 Converting Linear Programs to Networks 90

6 Interpreting and Using the Solution of a Linear Programming

Model 93
6.1 Validating a Model 93
6.2 Economic Interpretations 97
6.3 Sensitivity Analysis and the Stability of a Model 111
6.4 Further Investigations Using a Model 122
6.5 Presentation of the Solutions 124
 7 Non-linear Models 126
7.1 Typical Applications 126
7.2 Local and Global Optima 129
7.3 Separable Programming 136
7.4 Converting a Problem to a Separable Model 142

8 Integer Programming 144

8.1 Introduction 144
8.2 The Applicability of Integer Programming 145
8.3 Solving Integer Programming Models 151

9 Building Integer Programming Models I 154

9.1 The Uses of Discrete Variables 154
9.2 Logical Conditions and Zero-One Variables 160
9.3 Special Ordered Sets of Variables 165
9.4 Extra Conditions Applied to Linear Programming Models 169
9.5 Special Kinds of Integer Programming Model 176

10 Building Integer Programming Models II 187

10.1 Good and Bad Formulations 187
10.2 Simplifying an Integer Programming Model 197
10.3 Economic Information Obtainable by Integer Programming 209
10.4 Sensitivity Analysis and the Stability of a Model 216
10.5 When and How to Use Integer Programming 219

11 The Implementation of a Mathematical Programming System

of Planning 221
11.1 Acceptance and Implementation 221
11.2 The Unification of Organizational Functions 223
11.3 Centralization versus Decentralization 225
11.4 The Collection of Data and the Maintenance of a Model 227

PART 2 229
12 The Problems 231
12.1 Food Manufacture 1 231
When to buy and how to blend
12.2 Food Manufacture 2 232
Limiting the number of ingredients and adding extra conditions
12.3 Factory Planning 1 233
What to make, on what machines, and when
12.4 Factory Planning 2 234
When should machines be down for maintenance
12.5 Manpower Planning 234
How to recruit, retrain, make redundant, or overman
12.6 Refinery Optimization 236
How to run an oil refinery
12.7 Mining 238
Which pits to work and when to dose them down
12.8 Farm Planning 239
How much to grow and rear
12.9 Economic Planning 240
How should an economy grow
12.10 Decentralization 242
How to disperse officesfrom the capital
12.11 CurveFitting 242
Fitting a curve to a sei of data points
12.12 Logical Design 243
Constructing an electronic System with a minimum number
of components
12.13 Market Sharing 244
Assigning retailers to Company divisions
12.14 Opencast Mining 245
How much to excavate
12.15 Tariff Rates (Power Generation) 247
How to determine tariff rates for the sale of electricity
12.16 Hydro Power 247
How to generate and combine hydro and thermal electricity
generation
12.17 Three-dimensional Noughts and Crosses 248
A combinatorial problem
12.18 Optimizing a Constraint 249
Reconstructing an integer programming constraint more
simply
12.19 Distribution 1 249
Which factories and depots to supply which customers
12.20 Depot Location (Distribution 2) 251
Where should new depots be built
12.21 Agricultural Pricing 252
What prices to charge for dairy products
12.22 Efficiency Analysis 253
How to use data envelopment analysis to compare efficiencies
ofgarages
12.23 Milk Collection 255
How to route and assign milk collection lorries tofarms
12.24 Yield Management 256
What quantities of airline tickets to seil at what prices and
what times

vn
PART 3 259
13 Formulation and Discussion of Problems 261
13.1 Food Manufacture 1 262
13.2 Food Manufacture 2 264
13.3 Factory Planning 1 266
13.4 Factory Planning 2 267
13.5 Manpower Planning 269
13.6 Refinery Optimization 272
13.7 Mining 275
13.8 Farm Planning 277
13.9 Economic Planning 281
13.10 Decentralization 282
13.11 CurveFitting 284
13.12 Logical Design 285
13.13 Market Sharing 286
13.14 Opencast Mining 289
13.15 Tariff Rates (Power Generation) 290
13.16 Hydro Power 291
13.17 Three-dimensional Noughts and Crosses 292
13.18 Optimizing a Constraint 293
13.19 Distribution 1 295
13.20 Depot Location (Distribution 2) 297
13.21 Agricultural Pricing 298
13.22 Efficiency Analysis 300
13.23 Milk Collection 300
13.24 Yield Management 302

PART 4 305
14 Solutions to Problems 307
14.1 Food Manufacture 1 307
14.2 Food Manufacture 2 308
14.3 Factory Planning 1 309
14.4 Factory Planning 2 310
14.5 Manpower Planning 312
14.6 Refinery Optimization 314
14.7 Mining 314
14.8 Farm Planning 315
14.9 Economic Planning 316
14.10 Decentralization 318
14.11 CurveFitting 318
14.12 Logical Design 320
14.13 Market Sharing 320
14.14 Opencast Mining 321
14.15 Tariff Rates (Power Generation) 322
 14.16 Hydro Power 323
14.17 Three-dimensional Noughts and Crosses 324
14.18 Optimizing a Constraint 324
14.19 Distribution 1 325
14.20 Depot Location (Distribution 2) 327
14.21 Agricultural Pricing 328
14.22 Efficiency Analysis 329
14.23 Milk Collection 330
14.24 Yield Management 331

References 335

AuthorIndex 345

Subject Index 348