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Michigan Motors Corporation ( MMC ) just introduced a new luxury touring sedan. As part of its promotional campaign, the marketing department decided to send
Michigan Motors Corporation MMC just introduced a new luxury touring sedan. As part
of its promotional campaign, the marketing department decided to send personalized invita
tions to testdrive the new sedan to two target groups: current owners of an MMC luxury
automobile and owners of luxury cars manufactured by one of MMCs competitors. The
cost of sending a personalized invitation to each customer is estimated to be $ per letter.
Based on previous experience with this type of advertising, MMC estimates that of the
customers contacted from group and of the customers contacted from group will
testdrive the new sedan. As part of this campaign, MMC set the following goals:
Goal : Get at least customers from group to testdrive the new sedan.
Goal : Get at least customers from group to testdrive the new sedan.
Goal : Limit the expense of sending out the invitations to $
Assume that goals and are priority level goals and that goal is a priority level goal.
a Suppose that goals and are equally important; formulate a goal programming
model of the MMC problem.
b Use the goal programming computer procedure illustrated in Section to solve the
model formulated in part a
c If management believes that contacting customers from group is twice as important
as contacting customers from group what should MMC do
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