Reference no: EM133035388

Problem: You work for CNN.com and are in charge of selling banner ads for next Friday. You contract with companies to plan how many visitors to the CNN website are shown ads for their products. A visitor being exposed to one of the company's ads is known as an impression. You are paid based on how many of the impressions lead to a click through to the company's website.

Factoring in the click-through rates and the revenue per click through, you have calculated the following expected revenue per impression for two sections of the website (Business and Sports) for three of your client companies (Nike, Oracle, and P&G) :

Expected Revenue per Impression ($)

Section                        Nike                Oracle             P&G    
Business          .002                 .006                 .007
Sports              .005                 .002                 .003
 
Maximum Total Impressions by Section

Business          2,500,000
Sports              1,900,000

Your contracts specify lower and upper bounds on how many total impressions you will allocate to each client company (across both sections). Each company must be allocated at least 1,000,000 impressions but no more than 2,000,000.

Your job is to build a linear program to maximize revenue from these banner ads. Provide the algebraic model to solve this problem. Be sure to define your decision variables. Do not solve the problem, just model it.