The Biggs Department Store chain has hired an advertising firm to determine the
ID: 328701 • Letter: T
Question
The Biggs Department Store chain has hired an advertising firm to determine the types and amount of advertising it should invest in for its stores. The three types of advertising available are television and radio commercials and newspaper ads. The retail chain desires to know the mumber of each type of advertisement it should purchase in order to maximize exposure. It is estimated that each ad or commercial will teach the following potential audience and cost the following amount: Exposure Cost (USS) (people/ad or commercial) TV commercial 40,000 16.000 Radio commercial 20,000 14,000 Newspaper ad 29,000 8,000 The company must consider the following resource constraints | The budget limit for advertising is $200000 II. The television station has time available for 8 commercials de III. The ladio station has limny available for 15 commercials. Se IV. The newspaper has space available for 6 ads, sir V. The advertising agency has time and staff available for producing no more than a total of 25 commercials and/or ads sin If this problem is formulated as an integer and also a linear programming problem (separately), the combination of commercial and advertisements that would maximize the exposure would be. Integer Programming: x1 = 8; x2 = 2x3 = 6; Linear Programming. x1 = 8, x2 = 1.71 , x3 = 6, Integer Programming X1 & X2 - 1 3 - 6Explanation / Answer
Integer Programming: x1 = 8: x2 = 1: x3 = 6
Linear Programming: x1 = 8: x2 = 1.71: x3 = 6
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