Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 9 ABC company is launching a new luxury car and the marketing department decided to send personalized invitations to test drive the new car

image text in transcribed
Problem 9 ABC company is launching a new luxury car and the marketing department decided to send personalized invitations to test drive the new car to 2 target groups: (1) current owners of an ABC car and (2) owners of luxury cars of a ABC competitor. The cost of sending out letters is $1/letter. Based on previous experience, ABC estimates that 25% of the customers contacted from group 1 and 10% of customers from group 2 will actually do the test drive. ABC has the following goals: Goal 1: Get at least 10, 000 customers from group 1 to test drive the new car Goal 2: Get at least 5000 customers from group 2 to test drive the new car. Goal 3: Limit the expense of sending out invitations to $70,000 Goals 1 and 2 are the most important but ABC feels that contacting group 2 is twice as important as group 1. Goal 3 is the least important. Formulate a pre-emptive goal programming model for the problem. Solve the model using LINGO. What is the number of invitations to send out to each group? Which goals are violated and by how much? Attach your LINGO code and output. (15 marks) Problem 9 ABC company is launching a new luxury car and the marketing department decided to send personalized invitations to test drive the new car to 2 target groups: (1) current owners of an ABC car and (2) owners of luxury cars of a ABC competitor. The cost of sending out letters is $1/letter. Based on previous experience, ABC estimates that 25% of the customers contacted from group 1 and 10% of customers from group 2 will actually do the test drive. ABC has the following goals: Goal 1: Get at least 10, 000 customers from group 1 to test drive the new car Goal 2: Get at least 5000 customers from group 2 to test drive the new car. Goal 3: Limit the expense of sending out invitations to $70,000 Goals 1 and 2 are the most important but ABC feels that contacting group 2 is twice as important as group 1. Goal 3 is the least important. Formulate a pre-emptive goal programming model for the problem. Solve the model using LINGO. What is the number of invitations to send out to each group? Which goals are violated and by how much? Attach your LINGO code and output. (15 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Leading The Digital Workforce Internal Audit And IT Audit

Authors: Jeffrey W. Brown

1st Edition

1032323736, 978-1032323732

More Books

Students also viewed these Accounting questions

Question

A piston/cylinder contains 50 kg of water

Answered: 1 week ago

Question

1.9. Why is randomization important in an experiment?

Answered: 1 week ago