Question

The Denver advertising agency promoting the new Breem dishwashing detergent wants to get the best exposure possible for the product within the $105,000 advertising budget ceiling placed on it. To do so, the agency needs to decide how much of the budget to spend on each of its two most effective media: (1) television spots during the afternoon hours and (2) large ads in the city's Sunday newspaper. Each television spot costs $3,000; each Sunday newspaper ad costs $1,250. The expected exposure, based on industry ratings, is 35,000 viewers for each TV commercial and 20,000 readers for each newspaper advertisement. The agency director, Deborah Kellogg, knows from experience that it is important to use both media in order to reach the broadest spectrum of potential Breem customers. She decides that at least 5 but no more than 25 television spots should be ordered, and that at least 5 newspaper ads should be contracted. Aim of the objective function should be Maximize expected exposure. The optimum solution is: Number of TV spots (enter your response as a whole number)

Answer 1

A C D Decision Variables 1 Number of units of each type of Media 2 TV spots 2 Newspaper Ad No.of units 4 Objective function Maximize the total expected exposure 5 6 7 B4*35000+C4 20000 Constraints 9 B4*3000+C4*1250 105000 <= 10 B4 11B4 25 12 C4 13 14

A Decision Variables 1 Number of units of each type of Media 2 TV spots Newspaper Ad 3 4 No.of units Objective function Maximize the total expected exposure 6 7 Constraints 0 105000 10 0 11 0 25 12 0 5 13 LL

Sort Filter lext to What-If Eorecast X Solver Parameters SAS7 Set Objective: To: 0 Min Value Of Max By Changing Variable Cells: SB$4:SC$4 Subject to the Constraints: SAS10 SCS10 Add SAS11 SCS11 SAS12 SC$12 SAS9 SCS9 SB$4:SC$4 >= 0 Change Delete Reset All Load/Save Make Unconstrained Variables Non-Negative Select a Solving Method: Simplex LP Options Solving Method Select the GRG Nonlinear engine for Solver Problems that are smooth nonlinear. Select the LP Simplex engine for linear Solver Problems, and select the Evolutionary engine for Solver problems that are non-smooth Help Solve Close

A B Decision Variables 1 Number of units of each type of Media 2 | TV spots Newspaper Ad 3 No.of units Objective function 4 5 72 5 Maximize the total expected exposure 6 7 1615000 Constraints 105000 105000 10 5 5 11 5 25 12 72 5 13

Objective is to maximize the expected exposure

Number of TV spots = 5

Number of newspaper Ad = 72