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1. In this module, you looked at models with integer variables. Please describe an example of a problem for which these models would be appropriate.

## M5 – Models with Integer Variables

The difference between Linear Programming (LP) models (of previous chapters) and Integer Programming (IP) models (of this chapter) is that the changing cells are constrained to binary values (0 or 1) or integer positive values (0, 1, 2, 3 …. ).  This simple difference requires changing  the mathematical solution method from the “Simplex technique” to other methods such as the “Branch and Bound” Algorithm.  Read the textbook sections through 6.2 to understand the effects of changing the solution method on using Excel’s Solver tool.

Read the remaining sections of Chapter 6 which detail the following IP models:

• 6.3 Capital Budgeting Models;
• 6.4 Fixed Cost Models;
• 6.5 Set Covering and Location-Assignment Models; and
• 6.6 Cutting Stock Models.

Section 6.3 has the associated video Capital Budget Funding Model, Section 6.4 the associated video Fixed Cost Manufacturing Model, and Section 6.5 the associated video Location Hubs Model. You may find this videos helpful in understanding the material.

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