Sunday, December 25, 2011

Savings from applying MIP models

In the first chapter of “Applied Integer Programming: Modeling and Solution”, by Der-San Chen; Robert G. Batson; Yu Dang (2010), there is a table with successful mip applications taken from articles from Interfaces. See http://media.wiley.com/product_data/excerpt/67/04703730/0470373067.pdf.

Some numbers seem low: $0.25 million savings (EK:annual?) from a least-cost crew scheduling model at American Airlines in 1981, while others seem rather high: a coal transportation study by the World Bank and Chinese State Planning Commission (1995): $6.4 billion in savings (over what period is not specified).