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)