Learning Objectives

At the end of the module, the student will: Be able to recognize types of situations where integer and mixed integer linear programming formulations are appropriate. Be able to formulate capital budgeting and project selection-type problems as integer linear programming problems. Understand how zero-one integer linear variables can be used to handle special situations such as conditional, multiple choice and mutually exclusive constraints. Know how to interpret the computer output of an integer linear programming problem.

Readings

Anderson, D., Sweeney, D., and Williams, T. (1998). Quantitative Methods for Business (7th ed.). Cincinnati, OH: South-Western College Publishing. Chap 11 Integer Linear Programming (Sections 1, 3, & 4) Anderson, D., Sweeney, D., and Williams, T. (2000). The Management Scientist for Windows 95, Windows 98, and Windows NT (Version 5.0). Cincinnati, OH: South-Western College Publishing. Chap 5 Integer Linear Programming

Notes

The following topics are included in summary notes for Module Eight. Module 8.1 Notes: Capital Budgeting/Project Selection Problem Formulation Module 8.2 Notes: Computer Solution and Interpretation Module 8.3 Notes: Textbook Publishing Case

Assignment

The case assignment for Module 8 is "Textbook Publishing," pp. 479-480 of the text. Note: This case is not assigned for turn-in/grading. It is worked out in Module Notes 8.3. You may wish to work on the case, and then check your results with the notes. Of course, you may e-mail questions or case analyses to me for informal feedback. The Management Scientist Integer Linear Programming Module is used to provide information needed to answer case questions.

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