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Integer Programming Time Share Exchange Problem
CIS-418

Time Share Exchange problem
ORLANDO
HORSESHOE
Simon Business School CIS-418 Ricky Roet-Green
2
SAN DIEGO

Time Share Exchange problem
• Objective:
– Maximize the number of exchanges
• Decision variables:
– To assign slot x to customer y, 15 customers X 12 combinations
• Constraints:
– BinaryVariables(ifitistoohardtoforthesolverengine,youcanset
them as non-negative).
– Acustomercanonlyreceivewhatisinherallowance(basedon allowance rule)
– A customer will not receive a combination that wasn’t her first or second choice
– A customer can receive no more than one combination
– A customer can receive a particular resort/season combination only if
someone else gave the same combination up.
Simon Business School CIS-418 Ricky Roet-Green
4

Different business rules
Exchange rules:
• Only same color exchanges are allowed.
• Same color and downward exchanges are allowed. Recall the rank is
Red>White>Blue.
• All exchanges are allowed.
Customers’ satisfaction:
• First choice = Second choice
• First choice = a*Second choice, a>1. We capture customers’ satisfaction in
objective function.
Go to excel file “Time Share Homework” and solve the problem
Simon Business School CIS-418 Ricky Roet-Green
5

Different business rules
Exchange rule:
• Only same color exchanges are allowed.
• Same color and downward exchanges are allowed. Recall the rank is
Red>White>Blue.
• All exchanges are allowed.
Customers’ satisfaction:
• First choice = Second choice
• First choice = a*Second choice, a>1. We capture customers’ satisfaction in
objective function.
Go to excel file “Time Share Homework” and solve the problem
Simon Business School CIS-418 Ricky Roet-Green
6