Part 2 book “Quantitative analysis for management” has contents: Integer programming, goal programming, and nonlinear programming, project management, waiting lines and queuing theory models, simulation modeling, markov analysis, statistical quality control. | 10 Chapter Integer Programming, Goal Programming, and Nonlinear Programming Learning Objectives After completing this chapter, students will be able to: 1. Understand the difference between LP and integer programming. 2. Understand and solve the three types of integer programming problems. 3. Formulate and solve goal programming problems using Excel and QM for Windows. 4. Formulate nonlinear programming problems and solve using Excel. Chapter Outline Introduction Integer Programming Modeling with 0–1 (Binary) Variables Goal Programming Nonlinear Programming Summary • Glossary • Solved Problems • Self-Test • Discussion Questions and Problems • Internet Homework Problems • Case Study: Schank Marketing Research ♦ Case Study: Oakton River Bridge • Bibliography 381 381 10/02/14 1:29 PM 382 Chapter 10 • Integer Programming, Goal Programming, and Nonlinear Programming Introduction Integer programming is the extension of LP that solves problems requiring integer solutions. Goal programming is the extension of LP that permits more than one objective to be stated. Nonlinear programming is the case in which objectives or constraints are nonlinear. This chapter presents a series of other important mathematical programming models that arise when some of the basic assumptions of LP are made more or less restrictive. For example, one assumption of LP is that decision variables can take on fractional values such as X1 = , X2 = , or X3 = . Yet a large number of business problems can be solved only if variables have integer values. When an airline decides how many Boeing 757s or Boeing 777s to purchase, it can’t place an order for aircraft; it must order 4, 5, 6, 7, or some other integer amount. In this chapter we present the general topic of integer programming, and we specifically consider the use of special variables .
