Question

2)​The Spurling Group is considering using magazine outlets to advertise their online Web site. The company has identified seven publishers. Each publisher breaks down its subscriber base into a number of groups based on demographics and location. These data are shown in the following table:

Publisher	Group	Subscribers/Group	Cost/Group
A	5	460,000	$ 1,560.00
B	10	50,000	$ 290.00
C	4	225,000	$ 1,200.00
D	20	24,000	$ 130.00
E	5	1,120,000	$ 2,500.00
F	1	1,700,000	$ 7,000.00
G	2	406,000	$ 1,700.00

The company has set a budget of $25,000 for advertising and wants to maximize the number of subscribers exposed to their ads. However, publishers B and D are competitors and only one of these may be chosen. A similar situation exists with publishers C and G.

​Formulate and solve an integer optimization model to determine which publishers to select and how many groups to purchase for each publisher.

Answer 1

Solution:

Given that,

The Spurling Group is considering using magazine outlets to advertise their online Web site. The company has identified seven publishers. Each publisher breaks down its subscriber base into a number of groups based on demographics and location. These data are shown in the following table:

Publisher	Group	Subscribers/Group	Cost/Group
A	5	460,000	$ 1,560.00
B	10	50,000	$ 290.00
C	4	225,000	$ 1,200.00
D	20	24,000	$ 130.00
E	5	1,120,000	$ 2,500.00
F	1	1,700,000	$ 7,000.00
G	2	406,000	$ 1,700.00

The company has set a budget of $25,000 for advertising and wants to maximize the number of subscribers exposed to their ads. However, publishers B and D are competitors and only one of these may be chosen. A similar situation exists with publishers C and G.

​Formulate and solve an integer optimization model to determine which publishers to select and how many groups to purchase for each publisher.