Problem 2 Media Selection Problem SMM Company recently devel

Problem 2        Media Selection Problem

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.

Formulate the problem as a liner program with an objective to maximize the number of customers reached.   Provide the algebraic solution. Solve it using Solver.

(Hint: The number of decision variables = 7. Two each (daytime and evening) for each of the three weekend days and one for Sunday Game Time TV ad)

Solution