The Mkc Problem:Formulation Matters 
 
 
IBM consulting engagement in steel mill industry
 Match orders with surplus inventory, taking into account “color” contraints
- 2 colors per slab due to cutting before finishing mill
 
Natural formulation: binary variables
- Xij 	order i assigned to slab j
 - Ycj 	orders of color c obtained from slab j
 - Zj 	an order is filled by slab j used
 
MIP-equivalent but LP-better formulation 
- Redefinition of variables: “feasible patterns”
 - Column generation approach
 - Solved to optimality in FOUR seconds
 
“Color Generation Approach to Multiple Knapsack Problem with Color Side Constraints”, Ladanyi et al., (2001)