Question: 19. The Spurling Group is considering using magazine outlets to advertise their online Web site. The company has identified seven publishers. Each publisher breaks down
19. The Spurling Group is considering using magazine outlets to advertise their online Web site. The company has identified seven publishers. Each publisher breaks down its subscriber base into a number of groups based on demographics and location. These data are shown in the table.
Publisher Groups Subscribers/Group Cost/Group A 5 460,000 $1,560 B 10 50,000 $290 C 4 225,000 $1,200 D 20 24,000 $130 E 5 1,120,000 $2,500 F 1 1,700,000 $7,000 G 2 406,000 $1,700 The company has set a budget of $25,000 for advertising and wants to maximize the number of subscribers exposed to their ads. However, publishers B and D are competitors and only one of these may be chosen. A similar situation exists with publishers C and G. Formulate and solve an integer optimization model to determine which publishers to select and how many groups to purchase for each publisher.
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