The advertising agency promoting a new product is hoping to get the best possible exposure in...

The advertising agency promoting a new product is hoping to get the best possible exposure in terms of the number of people the advertising reaches. The agency will use a two-pronged approach: focused Internet advertising, which is estimated to reach 200,000 people for each burst of advertising, and print media, which is estimated to reach 80,000 people each time an ad is placed. The cost of each Internet burst is $3,000, as opposed to only $900 for each print media ad. It has been agreed that the number of print media ads will be no more than 5 times the number of Internet bursts. The agency hopes to launch at least 5 and no more than 15 Internet bursts of advertising. The advertising budget is $75,000. Given these constraints, what is the most effective advertising strategy in order to maximize the number of people to reach?

A) Formulate the Linear Programming Model

Define the decision variables (0.5pt)

Write the objective function (0.5pts)

Write the constraints (1 pts)

B) Solve it using MS-SOLVER.

Write the total maximum number of people to reach, optimum solution, slack/surplus values, and binding/non-binding constraints. (3 pts)

Expert Solution

orchestra answered 2 years ago

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