Lecture 2
Transportation Problem
Given information:
- Origins
- Destinations
- Costs per unit
- Limitations of supply / demand
Steps to kick-off solution…
- Decision Variables
- Objective Function
- Constraints
Travelling Salesman
The salesman travels to many cities on route once, returning to the 1st city without ever having repeated a city visited on his way from his home town and returning back to his hometown.
Information given
- the distances/costs from city to city
Specialised type of problem: Value 0 or 1 – 0 1 – Zero One Programming Problems
Solution
- Decision variables; can only be x = 1 or 0, he either takes that route or does not. Integers also, as he can’t take a half route…
- Objective function; Minimise the cost of his travels, but add all his planned travels.
- Constraints;
Capital Budgeting Problem
Cash Flow changes over a timeline:
Solution:
- Decision variables:
- cash available
- cash invested
- remaining funds
- returns
- Objective Function:
- maximise earnings, cash available…
- Constraints:
- limitations on funds
Cargo Loading Problem
Vessel to be loaded with multi-types in order to maximise profitability…
Decision variables: types of units, number of units per type…
Objective Function: maximisation
Constraints: limitations
Catering Problem
Effective management of repeatable goods (eg. table napkins)
Decision Variables: new, cleaned, soiled, remaining…
Objective Function: Minimise costs…
Constraints: limitations
Gotta go.