Business, 25.03.2020 20:19 daemonacoster
SMM Company recently developed a new instant salad machine, has 282,000 to spend on advertising. The product is to be initially test marketed in the Dallas area. The money is to be spent on 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.
Estimated Audience
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
SMM 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. SMM 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.
Considering the above limitations, write a linear programming formulation to help SMM determine the number for each ad type on the weekend so as to maximize the total audience reached.
1. Define the decision variables
DFR = number of daytime ads on Friday; DSA = number of daytime ads on Saturday; DSU = number of daytime ads on Sunday; EFR = number of evening ads on Friday; ESA = number of evening ads on Saturday; ESU = number of evening ads on Sunday; GSU = number of game-time ads on Sunday
2. Define the Objective Function Maximize the total audience reached:
Max (audience reached per ad of each type) x (number of ads used of each type)
Max 3000DFR +3000DSA +3000DSU +4000EFR+4000ESA +4000ESU +75000GSU
3. Define the Constraints Take out at least one ad of each type: (1) DFR + DSA + DSU > 1 (2) EFR + ESA + ESU > 1 (3) GSU > 1 Ten daytime spots available: (4) DFR < 10 (5) DSA < 10 (6) DSU < 10
Six evening news spots available: (7) EFR < 6 (8) ESA < 6 (9) ESU < 6
At least 5 ads per day: (10) DFR + EFR > 5 (11) DSA + ESA > 5 (12) DSU + ESU + GSU > 5
Only two Sunday game-time ad spots available: (13) GSU < 2
Spend no more than $50,000 on Friday: (14) 5000DFR + 7000EFR < 50000
Spend no more than $75,000 on Saturday: (15) 5000DSA + 7000ESA < 75000
Spend no more than $282,000 in total: (16) 5000DFR + 5000DSA + 5000DSU + 7000EFR + 7000ESA + 7000ESU + 100000GSU7 < 282000
Non-negativity: DFR, DSA, DSU, EFR, ESA, ESU, GSU > 0
Answers: 3
Another question on Business
Business, 21.06.2019 19:20
Which of the following statements is true? a. financial investment refers to the creation and expansion of business enterprisesb. economic investment refers to the creation and expansion of business enterprisesc. economic investment refers to the purchase of assets such as stocks, bonds, and real estated. both economic and financial investment refer to the purchase of assets such as stocks, bonds, and real estate
Answers: 2
Business, 21.06.2019 20:30
Which of the following best describes how the federal reserve bank banks during a bank run? a. the federal reserve bank has the power to take over a private bank if customers demand too many withdrawals. b. the federal reserve bank can provide a short-term loan to banks to prevent them from running out of money. c. the federal reserve bank regulates exchanges to prevent the demand for withdrawals from rising above the required reserve ratio. d. the federal reserve bank acts as an insurance company that pays customers if their bank fails. 2b2t
Answers: 3
Business, 22.06.2019 10:30
What type of budget is stated? a budget is a type of financial report that scrutinizes the inflow and outflow of money in a given financial year.
Answers: 1
Business, 22.06.2019 17:00
Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?
Answers: 2
You know the right answer?
SMM Company recently developed a new instant salad machine, has 282,000 to spend on advertising. The...
Questions
History, 05.01.2020 16:31
Mathematics, 05.01.2020 16:31
History, 05.01.2020 16:31
Mathematics, 05.01.2020 16:31
Mathematics, 05.01.2020 16:31
Chemistry, 05.01.2020 16:31
Mathematics, 05.01.2020 16:31
Computers and Technology, 05.01.2020 16:31
Chemistry, 05.01.2020 16:31
Mathematics, 05.01.2020 16:31
Mathematics, 05.01.2020 16:31
