The advertising director of a large retail store in Lima, Ohio, is considering three advertising possibilities: ads in the Sunday Lima Dispatch, ads in a local trade magazine that is distributed free to all houses in the city and northwest suburbs, and ads on Lima’s WLIO-TV station. She wishes to obtain a new-customer exposure level of at least 50% within the city and 60% in the northwest suburbs. Each TV ad has a new customer exposure level of 4.5% in the city and 2.75% in the northwest suburbs. The dispatch ads have corresponding exposure levels per ad of 3.25% and 3% respectively, while the trade magazine has exposure levels per ad is 0.75% and 1% respectively. The relevant costs are $900 per dispatch ad, $300 per trade magazine ad, and $1,800 per TV ad. The advertising policy is that no single media type should consume more than 40% of the total amount spent. Find the advertising strategy that will meet the store’s objective at minimum cost.
Type the linear program, optimal solution, and objective function value in a word document.
Submit your excel file.
The advertising director of a large retail store in Lima, Ohio, is considering three advertising possibilities: ads in the Sunday Lima Dispatch, ads in a local trade magazine that is distributed free to all houses in the city and northwest suburbs, and ads on Lima’s WLIO-TV station. She wishes to obtain a new-customer exposure level of at least 50% within the city and 60% in the northwest suburbs. Each TV ad has a new customer exposure level of 4.5% in the city and 2.75% in the northwest suburbs. The dispatch ads have corresponding exposure levels per ad of 3.25% and 3% respectively, while the trade magazine has exposure levels per ad is 0.75% and 1% respectively. The relevant costs are $900 per dispatch ad, $300 per trade magazine ad, and $1,800 per TV ad. The advertising policy is that no single media type should consume more than 40% of the total amount spent. Find the advertising strategy that will meet the store’s objective at minimum cost.
Given : The advertising director of a large retail store in Lima, Ohio, is considering three advertising possibilities :
1. ads in the Sunday Lima Dispatch,
2. ads in a local trade magazine that is distributed free to all houses in the city and northwest suburbs, and
3. ads on Lima’s WLIO-TV station
She wishes to obtain a new-customer exposure level of at least 50% within the city and 60% in the northwest suburbs.
Each TV ad has a new customer exposure level of 4.5% in the city and 2.75% in the northwest suburbs. The dispatch ads have corresponding exposure levels per ad of 3.25% and 3% respectively, while the trade magazine has exposure levels per ad is 0.75% and 1% respectively.
The relevant costs are $900 per dispatch ad, $300 per trade magazine ad, and $1,800 per TV ad. The advertising policy is that no single media type should consume more than 40% of the total amount spent.
Step by step
Solved in 5 steps with 3 images
