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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

  1. 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?

  1. (35 points) Formulate and solve the LP problem by using Excel solver.
  2. (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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