PRIVATE UNIVERSITY OF THE NORTH

OPERATIONS RESEARCH II
Laureate International Universities

BINARY PROGRAMMING
DECISIONS OF THE TYPE NO OR YES (0 - 1)

Instructions:
 Model the following problem considering the use of binary variables.
 Finding the solution through software.

PROBLEM (Production planning)

A certain production line manufactures two products. The pertinent data are shown in the first table attached.
The total time available (for production and start-up) each week is 80 hours. The firm has no product
inventory at the beginning of week 1, and is not allowed to have any at the end of week 4. The cost to conser -
var a unit of inventory from one week to the next is $4 for each product. One unit of unsatisfied demand costs
$10 for product A and $15 for product B. The data on demand are shown in the second table below . The line
is closed for cleaning operations every weekend. Therefore, if a product is manufactured in the current week,
the cost corresponding to the start-up time of the equipment in the following week will have to be paid, if it is
decided to manufacture it. Only one type of product can be manufacturedduring the week. There can be no
production during the time the line is running. Formulate and solve this 4-week planning model. The
objective is to maximize profits over the 4-week period.

PRODUCT DATA
PRODUCT
A B
Start-up time 5 hours 10 hours
Production time per unit 0.5 hours 0.75 hours
Start-up cost $200 $400
Cost of production per unit $10 $15
Sales price $20 $30

DEMAND DATA
WEEK
PRODUCT
1 2 3 4
7
A 80 100 80
5
5
B 15 20 30
0

Solution:

VARIABLES:
Xijk: Units produced of product i in week j to cover the demand of week k.
Yij: Whether or not product i is manufactured in week j

OBJECTIVE FUNCTION;
MAX = 20*(XA11+XA12+XA13+XA14+XA22+XA23+XA24+XA33+XA34+XA44)+
30*(XB11+XB12+XB13+XB14+XB22+XB23+XB24+XB33+XB34+XB44)-
(200*(YA1+YA2+YA3+YA4)+400*(YB1+YB2+YB3+YB4))-
(10*(XA11+XA22+XA33+XA44)+14*(XA12+XA23+XA34)+18*(XA13+XA24)+22*(XA14))-
(15*(XB11+XB22+XB33+XB44)+19*(XB12+XB23+XB34)+23*(XB13+XB24)+27*(XB14))-
(10*((80-XA11)+(100-XA12-XA22)+(75-XA13-XA23-XA33)+(80-XA14-XA24-XA34-XA44)))-
(15*((15-XB11)+(20-XB12-XB22)+(50-XB13-XB23-XB33)+(30-XB14-XB24-XB34-XB44)));

DEMAND RESTRICTIONS;
XA11<=80;
XB11<=15;
XA12+XA22<=100;
XB12+XB22<=20;
XA13+XA23+XA33<=75;
XB13+XB23+XB33<=50;
XA14+XA24+XA34+XA44<=80;

Eng. Manuel Sánchez Terán

 PRIVATE UNIVERSITY OF THE NORTH
OPERATIONS RESEARCH II
Laureate International Universities

XB14+XB24+XB34+XB44<=300;

!ONLY ONE TYPE OF PRODUCT DURING THE WEEK;

YA1+YB1=1;
YA2+YB2=1;
YA3+YB3=1;
YA4+YB4=1;

!TIME CONSTRAINTS;
5*YA1+10*YB1+0.5*(XA11+XA12+XA13+XA14)+0.75*(XB11+XB12+XB13+XB14)<=80;
5*YA2+10*YB2+0.5*(XA22+XA23+XA24)+0.75*(XB22+XB23+XB24)<=80;
5*YA3+10*YB3+0.5*(XA33+XA34)+0.75*(XB33+XB34)<=80;
5*YA4+10*YB4+0.5*(XA44)+0.75*(XB44)<=80;

!ALLOW QUANTITIES ONLY WHEN PRODUCTION IS SCHEDULED;

XA11+XA12+XA13+XA14<=(80+100+75+80)*YA1;
XA22+XA23+XA24<=(100+75+80)*YA2;
XA33+XA34<=(75+80)*YA3;
XA44<=(80)*YA4;
XB11+XB12+XB13+XB14<=(15+20+50+30)*YB1;
XB22+XB23+XB24<=(20+50+30)*YB2;
XB33+XB34<=(50+30)*YB3;
XB44<=(30)*YB4;

@GIN(XA11);@GIN(XA12);@GIN(XA13);@GIN(XA14);
@GIN(XA22);@GIN(XA23);@GIN(XA24);
@GIN(XA33);@GIN(XA34);
@GIN(XA44);
@GIN(XB11);@GIN(XB12);@GIN(XB13);@GIN(XB14);
@GIN(XB22);@GIN(XB23);@GIN(XB24);
@GIN(XB33);@GIN(XB34);
@GIN(XB44);

@BIN(YA1);@BIN(YA2);@BIN(YA3);@BIN(YA4);
@BIN(YB1);@BIN(YB2);@BIN(YB3);@BIN(YB4);

Eng. Manuel Sánchez Terán