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An advertising campaign for a new snack chip will be conducted in a limited geographical area and can use TV time, radio time, and newspaper
An advertising campaign for a new snack chip will be conducted in a limited geographical area and can use TV time, radio time, and newspaper ads. Information about each advertising medium is shown below.
The number of TV ads cannot exceed the number of radio ads by more than 4 and the advertising budget is $10,000. Furthermore, the campaign wants to achieve an exposure quality of at least 1,500. Develop a linear programming model that will maximize the number of people reached subject to the constraints. The problem has been formulated below: Let T = number of Television ads. R = number of Radio ads. N = number of Newspaper ads. Maximize People = 10,000T + 3,000R + 5,000N Subject to: 500T + 200R + 400N = 10,000 (budget, $) 30T + 40R + 25N = 1,500 (Exposure quality) T R = 4 (Condition) T, R, N = 0 (Nonnegativity Questions: 1. Use Excel Solver to solve the problem. Use Sheet 1 of Excel. [10 pts.] 2. The Solver solution in Question 1 allows fractional values for the decision variables. This is a problem since we cant interpret a fraction of an ad. Therefore, add a constraint restricting the values of the decision variables to integer values, and solve. [You do this by putting the changing cells into the Cell Reference box and selecting int in the direction box.] Use Sheet 2 of Excel. [8 pts.] 3 a. Provide a separate summary of the two outputs (exclude sensitivity analysis). [16 pts.] b. What major differences do you see in the solutions? [6 pts.] Submission
Ad Medium | Cost per Ad ($) | Number Reached per Ad | Exposure Quality per Ad | ||
TV | 500 | 10000 | 30 | ||
Radio | 200 | 3000 | 40 | ||
Newspaper | 400 | 5000 | 25 | ||
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