Allocate between radio and television advertising

Assignment Help Operation Management

Reference no: EM131036570

A brand manager for Lolol must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, which it would like to maximize. Costs per minute of advertising are also known, and the manager has a limited budget of $25,000. The manager has decided that because television ads have been found to be much more effective than radio ads, at least 70% of the time should be allocated to television. Suppose that we have the following data:

Type of Ad Exposure/Minute Cost/Minute

Radio 150 $ 400

TV 800 $2000

a. What is the objective function?

b. What are the equations for the constraints?

c. Set up your linear program in Microsoft Excel. Solve it using the Solver add-in.

d. What is the optimal solution? Identify the number of minutes of ads to purchase and the total exposure.

e. Which constraints use all of the available resources? Which constraints have resources remaining?

Reference no: EM131036570

Questions Cloud

Resistant employees consists of middle managers : A second group of resistant employees consists of middle managers. Some middle managers resist using your company's intranet. Although there middle managers do not resist the technology per se and use their PCs for multiple purposes, including commun..

Alternative minimum taxable income : Abbygail, who is single, had taxable income of $120,000 for 2015. She had positive AMT adjustments of $35,000; negative AMT adjustments of $16,000; and tax preference items of $45,000.

Equipment produces two types of desks-standard-deluxe : Johnson Office Equipment produces two types of desks, standard and deluxe. Deluxe desks have oak tops and more-expensive hardware and require additional time for finishing and polishing. What is the objective function? What are the equations for the ..

Some of them seem computer-phobic : One resistant group of employees is made up of top managers. Some of them seem computer-phobic. They have never used, and do not want to start using, personal computer (PCs) for any purpose, including communication. What step will you take to get the..

Allocate between radio and television advertising : A brand manager for Lolol must determine how much time to allocate between radio and television advertising during the next month. Market research has provided estimates of the audience exposure for each minute of advertising in each medium, which it..

Create liability for fraudulent misrepresentation : Assume a salesperson intentionally made one of the following statements - knowing that the statement was false - to a customer considering a purchase. Which statement could create liability for fraudulent misrepresentation if the customer made the pu..

Linear programming for production scheduling problems : What benefits exist in using linear programming for production scheduling problems? Provide an example and discuss your opinion.? What are at least the two important relationships of an inventory system (EOQ) you need to recognize in order to apply t..

Difference in actual authority and apparent authority : Tom, a breeder of livestock, lives in Jefferson City, Tennessee. Tom is knowledgeable about cattle, but had limited means. He is, however, friendly with Ann Melon, a wealthy widow who fancies fine animals. On one or two prior occasions, Tom has purch..

Summarize the assignment into one page paper : Why are inert pills suddenly overwhelming promising new drugs and established medicines alike? The reasons are only just beginning to be understood.

User Account

All Pages