Question
Solve for the optimal solution and sensitivity report with the information above and answer the following questions: 1. What is the range of the number
Solve for the optimal solution and sensitivity report with the information above and answer the following questions:
1. What is the range of the number of exposures for TV spots that the current optimal solution remains optimal?
2. If the unit exposure of TV spots increases by 500,000 and that of SS (Sunday supplements) ads increases by 250,000 per $1,000, would the current optimal solution remain optimal? Explain why or why not and show your computation.
3. How much could the total expected number of exposures be increased for each additional $1,000 added to the planning budget?
4. What is the range of the planning budget that the change of the number of exposures per $1,000 addition of the planning budget in the previous problem would remain valid?
5. If both advertising and planning budgets were increased by $50,000, would the shadow prices remain unchanged? Why or why not. Show your computation.
6. What would the new total number of exposures be for the previous problem? Compute it.
7. If the minimum number of young children required to be reached increased by 1 million (from 5 millions), how would the total number exposures change? Show your computation.
Super Grain Corp.Advertising-Mix Problem Data Cells parameters Changing cells decisions Output cells depends on changing cells Objective cell TV Spots Magazine Ads 1300 600 SS Ads 500 Exposure per Ad (thousands) Cost per Ad ($thousands) 300 150 100 90 Ad Budget Planning Budget Budget Spent 3775 1000 V Budget Available 4000 1000 30 40 VI Number Reached per Ad (millions) Total Reached Minimum Acceptable 1.2 0.1 5 Young Children Parents of Young Children 0.5 0.2 0.2 5.85 TV Spots Magazine Ads Coupon Redemption 0 4 0 per Ad ($thousands) SS Ads 120 Total Redeemed 1490 = Required Amount 1490 TV Spots Magazine Ads 3 14 SS Ads 7.75 Total Exposures (thousands) 16175 Number of Ads Maximum TV Spots 15Step by Step Solution
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