To use linear programming for solving the following

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Reference no: EM13375656

To use Linear Programming for solving the following inequalities.

Following Twin Conditions (as mandated by the Indian Regulatory Authority) Twin Condition I for TV Broadcasters selling their content to Cable TV Service Providers :- To Sell their content (TV Channels) to MSOs (viz. Cable TV Service Providers) as a Bouquet (Packet), Broadcasters have to abide by the following Twin Conditions (PAGE 700 OF PFA 1) :-

A> Bouquet Rate > = 66% of the Sum of Ala Carte Rates (Standalone) of the TV Channels

B> Average Bouquet Rate > = 33% of Each Ala Carte Rate of the TV Channel in that Bouquet The implicit principle behind Twin Condition I is that If I buy N different things together as a packet (Bouquet), there will be a definite reduction in price.

But, the reduction is in such a way that :-

1> It cannot be below a certain % (66) of the total price AND

2> The average selling price of the TV Channels in the Bouquet will not be below a certain % (33) of their individual prices. The % (2/3 & 1/3) depend on the profit and pricing mechanism Twin Condition II for Cable TV service Providers for reselling Content to Retail Customers (Cable TV Subscribers) :- To resell this content to the retail subscriber,

MSOs have to abide by the following Twin conditions :-

A> Ala Carte Rates for end consumer (Retail) < = 2 x (Ala Carte Rates provided by the Broadcaster to the MSOs)

B> Ala Carte of a TV Channel < = 3 x Ascribed Value of a TV Channel where Ascribed Value is the Ala Carte Rate rationalised with respect to the Bouquet rate.

Twin Condition I is the MSO's content purchase and Twin Condition II is the MSO's content sale. Need to solve inequalities with multiple variables (Sample Data) using Linear Programming.

Sample Data :- mediapro (a channel aggregator has the following tv channels in one of its bouquets (bouquet no. 2, page no. 17 of pfa 2) this bouquet has been priced @ inr 43.2 average bouquet rate = inr 2.88 (please see note below) as can be seen,the bouquet rate of inr 43.2 is greater than 66% of sum of all ala carte channel rates which is inr 64.88 also, average bouquet rate of inr 2.88 is greater than 33% of each ala carte channel rate present in this bouquet the above principle exists for all the bouquets created by media pro (pfa attached herewith) note :- 1. A la carte implies stand alone rates of each tv channel as given by that broadcaster average bouquet pay channel rate = bouquet rate / number of pay channels in that bouquet

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Reference no: EM13375656

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