Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. A clothing retailer is planning to advertise its new brand. Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage
3. A clothing retailer is planning to advertise its new brand. Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are as shown: Constraint Television Radio Newspaper Audience per advertisement 10,000 4,000 Cost per advertisement $1,000 S200 $600 Maximum media usage 20 15 1.800 8 The advertising budget is $30,000. To ensure a balanced use of advertising media, radio advertisements must NOT exceed 30 percent of the total number of advertisements authorized. The retailer wants to determine the optimal number of advertisements for each type of media to maximize the total audience reached. a. (10 points) Formulate the problem into a LP model. b. (10 points) What is the optimal solution, and what is the optimal objective function value? Use Excel Solver. Provide your answer and sensitivity reports in separate worksheets). Optimal solution: Optimal objective function value: C. (5 points) Suppose that the maximum media usage for television has increased from 20 to 21. Then, according to the sensitivity report, how does the optimal objective function value change? d. (5 points) Suppose an extra $100 has allocated to the advertising budget. Then, according to the sensitivity report, how does the optimal objective function value change
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started