An online retailer wants to optimize its marketing portfolio budget to maximize its return on investment (ROI).
Question:
An online retailer wants to optimize its marketing portfolio budget to maximize its return on investment (ROI). The retailer has decided to allocate a AED 1,000,000 budget across three different campaigns: print media, mobile advertising, and social media. The expected ROI is 3% from print media, 15% from mobile advertising, and 12% from social media. The retailer decided that print media should account for at least 15% of the budget while mobile advertising should not account for more than 40% of the total budget. Furthermore, the retailer decides that social media and print media should account for at least 50% of the total allocated budget.
Formulate an LP problem to help the retailer allocate the budget optimally to obtain maximum ROI. Should the company consider revising its allocation plan?
Step by Step Answer:
Operations Management Sustainability And Supply Chain Management
ISBN: 9780135173626
13th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson