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Question 1: Almarai Company recently developed a new type of juice (watermelon), has $282,000 to spend on advertising, The product is to be initially test
Question 1: Almarai Company recently developed a new type of juice (watermelon), has $282,000 to spend on advertising, The product is to be initially test marketed in the KSA area. The money is to be spent on a TV advertising blitz during one weekend (Friday, Saturday, and Sunday) in November. The three options available are: daytime advertising, evening news advertising, and Sunday game-time advertising. A mixture of one-minute TV spots is desired. Ad Type Reached With Each Ad Cost Per Ad Daytime 3,000 $5,000 Evening News 4,000 $7,000 Sunday Game 75,000 $100,000 Almarai wants to take out at least one ad of each type (daytime, evening-news, and game-time). Further, there are only two game-time ad spots available. There are ten daytime spots and six evening news spots available daily. Almarai wants to have at least 5 ads per day, but spend no more than $50,000 on Friday and no more than $75,000 on Saturday. a. Write a Linear Programming model and solve it using Excel solver to determine the daytime advertising in each day, evening news advertising in each day, and Sunday game-time advertising to maximize reach. b. What is the lowest reached with Ad for Daytime Ad that Almarai could have while maintaining the optimal solution recommended in part a? c. If extra $20,000 to spend on advertising available, how these will affect the total reached with Ad
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