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For the ColPal Products scenario (Problems 5 and 12 in Chapter 134 ), use the spreadsheet model to answer the following questions by changing the
For the ColPal Products scenario (Problems 5 and 12 in Chapter 134 ), use the spreadsheet model to answer the following questions by changing the parameters and re-solving the model. Answer each question independently relative to the original problem. a. Suppose that the exposure for TV advertising was incorrectly estimated and should have been 875 . How would the optimal solution have been affected? b. Radio listening has gone down, and new marketing studies have found that the exposure has dropped to 150 . How will this affect the optimal solution? c. The marketing manager has increased the budget by $2,000. A brand manager for ColPal Products must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, which it would like to maximize. Costs per minute of advertising are also known, and the manager has a limited budget of $25,000. The manager has decided that because television ads have been found to be much more effective than radio ads, at least 75% of the time should be allocated to television. Suppose that we have the following data: a. Identify the decision variables, objective function, and constraints in simple verbal expressions. b. Mathematically formulate a linear optimization model. Implement the linear optimization model that you developed for ColPal Products in Problem 5 on a spreadsheet and use Solver to find an optimal solution. Interpret the Solver Answer Report, identify the binding constraints, and verify the values of the slack variables by substituting the optimal solution into the model constraints
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