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Please submit your solutions as ONE single workbook with the sheets clearly labelled to indicate the corresponding problem numbers as indicated on this test. For

Please submit your solutions as ONE single workbook with the sheets clearly labelled to indicate the corresponding problem numbers as indicated on this test.

For each problem, you are required to use a textbox to show the definition of your decision variables. You may include this textbox only with part a) of the problem if the following parts do not require additional variables to reformulate.

If a problem requires sensitivity analysis, re-order the worksheets so that they appear in the order of the questions.

Answers to the questions should be clearly described in a separate textbox of the corresponding labelled worksheets. Since you will only be credited with problems that have correct answers, please check carefully your report textbox.

For each problem formulation, please highlight the decision variables in Yellow, the constriants (Left Hand Side) in Blue, and the Objective function in Red.

2)The Spurling Group is considering using magazine outlets to advertise their online Web site. The company has identified seven publishers. Each publisher breaks down its subscriber base into a number of groups based on demographics and location. These data are shown in the following table:

Publisher

Group

Subscribers/Group

Cost/Group

A

5

460,000

$ 1,560.00

B

10

50,000

$ 290.00

C

4

225,000

$ 1,200.00

D

20

24,000

$ 130.00

E

5

1,120,000

$ 2,500.00

F

1

1,700,000

$ 7,000.00

G

2

406,000

$ 1,700.00

The company has set a budget of $25,000 for advertising and wants to maximize the number of subscribers exposed to their ads. However, publishers B and D are competitors and only one of these may be chosen. A similar situation exists with publishers C and G.

Formulate and solve an integer optimization model to determine which publishers to select and how many groups to purchase for each publisher.

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