E-commerce shopping platform Lazada is kicking off the year-end mega sale with thousands of brands and sellers across Malaysia which has $282,000 to spend on advertising. The money is spend on a TV advertising for selected three consecutive days (Friday, Saturday and Sunday) of December. Three different time frames are available to advertise: daytime, evening-time and Sunday-special. One-minute of daytime advertisement costs $5,000 and is estimated to reach an average of 3,000 audiences. One-minute of evening-time advertisement costs $7,000 and is estimated to reach an average of 4,000 audiences while a minute of Sunday-special advertisement is estimated to reach an average of 75,000 audiences and costs $100,000. Yet, there are only 2 Sunday-special slots available specifically on Sunday; while there are 10 daytime slots and 6 evening-time slots available daily. Lazada plans to have: (i) at least one advertisement for each time frame; (ii) at least 5 advertisements per day; (iii) advertising budget allocation is restricted to no more than $50,000 spend on the first day and no more than $75,000 spend on the second day. Formulate a linear programming model to determine the optimum number of advertisement at the maximum total audience exposure.
E-commerce shopping platform Lazada is kicking off the year-end mega sale with thousands of brands and sellers across Malaysia which has $282,000 to spend on advertising. The money is spend on a TV advertising for selected three consecutive days (Friday, Saturday and Sunday) of December. Three different time frames are available to advertise: daytime, evening-time and Sunday-special. One-minute of daytime advertisement costs $5,000 and is estimated to reach an average of 3,000 audiences. One-minute of evening-time advertisement costs $7,000 and is estimated to reach an average of 4,000 audiences while a minute of Sunday-special advertisement is estimated to reach an average of 75,000 audiences and costs $100,000. Yet, there are only 2 Sunday-special slots available specifically on Sunday; while there are 10 daytime slots and 6 evening-time slots available daily. Lazada plans to have: (i) at least one advertisement for each time frame; (ii) at least 5 advertisements per day; (iii) advertising budget allocation is restricted to no more than $50,000 spend on the first day and no more than $75,000 spend on the second day. Formulate a linear programming model to determine the optimum number of advertisement at the maximum total audience exposure.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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E-commerce shopping platform Lazada is kicking off the year-end mega sale with thousands
of brands and sellers across Malaysia which has $282,000 to spend on advertising. The
money is spend on a TV advertising for selected three consecutive days (Friday, Saturday and
Sunday) of December. Three different time frames are available to advertise: daytime,
evening-time and Sunday-special. One-minute of daytime advertisement costs $5,000 and is
estimated to reach an average of 3,000 audiences. One-minute of evening-time advertisement
costs $7,000 and is estimated to reach an average of 4,000 audiences while a minute of
Sunday-special advertisement is estimated to reach an average of 75,000 audiences and costs
$100,000. Yet, there are only 2 Sunday-special slots available specifically on Sunday; while
there are 10 daytime slots and 6 evening-time slots available daily. Lazada plans to have:
(i) at least one advertisement for each time frame;
(ii) at least 5 advertisements per day;
(iii) advertising budget allocation is restricted to no more than $50,000 spend on the first day
and no more than $75,000 spend on the second day.
Formulate a linear programming model to determine the optimum number of advertisement
at the maximum total audience exposure.
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