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Ashe is running for mayor in a small town of Anatolia. She has selected four ways to advertise: television ads, radio ads, billboards and newspaper
- Ashe is running for mayor in a small town of Anatolia. She has selected four ways to advertise: television ads, radio ads, billboards and newspaper ads. The costs, the audience reached by each type of ad and the maximum number of ads to be usable are given in the following table.
Type of ad | Cost per ad | Audience reached per ad | Maximum number |
TV | 700 TL | 30,000 | 10 |
Radio | 400 TL | 20,000 | 12 |
Billboards | 500 TL | 24,000 | 8 |
Newspapers | 100 TL | 8,000 | 10 |
In addition, Ashe has decided that there should be at least 6 ads on TV or radio or a combination of these two. The amount spent on billboards and newspapers together must not exceed the amount spent on TV ads. The monthly budget for advertising is 15000 TL. How many ads should be placed in each medium to maximize the total number of people reached?
- (35 points) Formulate and solve the LP problem by using Excel solver.
- (15 points) How do the optimal solution and the objective function value change if each TV add can reach 33,000 people? What if Ashe decides to increase the monthly budget to 16000 while at the same time the combined number of TV and radio ads must be at least 7; how do the optimal solution and the objective function value change then? (Answer part b by the information you obtain from the Excel Sensitivity Report.)
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