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Q2. A department store plans to schedule its annual advertising. The total budget is set at $200,000. The store can purchase local radio spots at
Q2. A department store plans to schedule its annual advertising. The total budget is set at $200,000. The store can purchase local radio spots at $100 per spot, local television spots at $500 per spot and local newspaper advertising at $200 per ad. The payoff from each advertising medium is a function of its audience size and audience characteristics. The generally accepted objective criterion for advertising is audience points, reflected in the following table: Medium Points Radio 30 per spot Television 150 per spot Newspaper 150 per ad The president of the firm has established the following goals for the campaign: 1. The total budget should not exceed $200,000. 2. Meet the contract with the local television station that requires that the firm spend at least $30,000. 3. The corporate advertising policy prohibits annual newspaper ad expenditures in excess of $50,000. 4. Maximize the audience points for the advertising campaign. The president has established unit weights on the goals of 10, 6, 3 and 1 for the goals 1 through 4, respectively. Formulate the above as a goal programming problem and solve using Excel
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