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The Unilever Company plans to allocate some or all of its monthly advertising budget of GH¢82,000 in the Mankato area. It can purchase local radio spots at GH¢120 per spot, local TV spots at GH¢600 per spot, and local newspaper advertising at GH¢220 per insertion. The company's policy requirements specify that the company must spend at least GH¢40,000 on TV and allow monthly newspaper expenditures up to GH¢60,000. The payoff from each advertising medium is a function of the size of its audience. The general experience of the firm is that the values of insertions and spots in terms of "audience points" (arbitrary unit), are as given below: Radio 40 audience points per spot TV 180 audience points per spot Newspapers 320 audience points per insertion The model was solved using excel solver and part of the results is provided in table 3 below. Use it to answer the auestions that follow. Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$11 $B$12 $B$13 X1 375 150 1E+30 20.76923077 X2 60 180 445 1E+30 X3 = -45 280 45 1E+30 Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease Advertising Budget $F$5 Usage 75000 1.25 75000 1E+30 33000 Expenditure on TV $F$6 Usage Expenditure 30000 -0.89 30000 33000 30000 on Newspaper $F$7 Usage 15000 1E+30 5000 Number of Radio spots $F$8 Usage 375 100 275 1E+30 QUESTION Determine the optimal solution

The Unilever Company plans to allocate some or all of its monthly advertising budget of GH¢82,000 in the Mankato area. It can purchase local radio spots at GH¢120 per spot, local TV spots at GH¢600 per spot, and local newspaper advertising at GH¢220 per insertion. The company's policy requirements specify that the company must spend at least GH¢40,000 on TV and allow monthly newspaper expenditures up to GH¢60,000. The payoff from each advertising medium is a function of the size of its audience. The general experience of the firm is that the values of insertions and spots in terms of "audience points" (arbitrary unit), are as given below: Radio 40 audience points per spot TV 180 audience points per spot Newspapers 320 audience points per insertion The model was solved using excel solver and part of the results is provided in table 3 below. Use it to answer the auestions that follow. Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$11 $B$12 $B$13 X1 375 150 1E+30 20.76923077 X2 60 180 445 1E+30 X3 = -45 280 45 1E+30 Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease Advertising Budget $F$5 Usage 75000 1.25 75000 1E+30 33000 Expenditure on TV $F$6 Usage Expenditure 30000 -0.89 30000 33000 30000 on Newspaper $F$7 Usage 15000 1E+30 5000 Number of Radio spots $F$8 Usage 375 100 275 1E+30 QUESTION Determine the optimal solution

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 50P
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ADVERTISING -OPTIMAL SOLUTION

The Unilever Company plans to allocate some or all of its monthly advertising budget of GH¢82,000 in the Mankato area. It can purchase local radio spots at GH¢120 per spot, local TV spots at GH¢600 per spot, and local newspaper advertising at GH¢220 per insertion. The company's policy requirements specify that the company must spend at least GH¢40,000 on TV and allow monthly newspaper expenditures up to GH¢60,000. The payoff from each advertising medium is a function of the size of its audience. The general experience of the firm is that the values of insertions and spots in terms of "audience points" (arbitrary unit), are as given below: Radio 40 audience points per spot TV 180 audience points per spot Newspapers 320 audience points per insertion The model was solved using excel solver and part of the results is provided in table 3 below. Use it to answer the auestions that follow. Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$11 $B$12 $B$13 X1 375 150 1E+30 20.76923077 X2 60 180 445 1E+30 X3 = -45 280 45 1E+30 Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease Advertising Budget $F$5 Usage 75000 1.25 75000 1E+30 33000 Expenditure on TV $F$6 Usage Expenditure 30000 -0.89 30000 33000 30000 on Newspaper $F$7 Usage 15000 1E+30 5000 Number of Radio spots $F$8 Usage 375 100 275 1E+30 QUESTION Determine the optimal solution
Transcribed Image Text:The Unilever Company plans to allocate some or all of its monthly advertising budget of GH¢82,000 in the Mankato area. It can purchase local radio spots at GH¢120 per spot, local TV spots at GH¢600 per spot, and local newspaper advertising at GH¢220 per insertion. The company's policy requirements specify that the company must spend at least GH¢40,000 on TV and allow monthly newspaper expenditures up to GH¢60,000. The payoff from each advertising medium is a function of the size of its audience. The general experience of the firm is that the values of insertions and spots in terms of "audience points" (arbitrary unit), are as given below: Radio 40 audience points per spot TV 180 audience points per spot Newspapers 320 audience points per insertion The model was solved using excel solver and part of the results is provided in table 3 below. Use it to answer the auestions that follow. Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$11 $B$12 $B$13 X1 375 150 1E+30 20.76923077 X2 60 180 445 1E+30 X3 = -45 280 45 1E+30 Final Shadow Constraint Allowable Allowable Cell Name Value Price R.H. Side Increase Decrease Advertising Budget $F$5 Usage 75000 1.25 75000 1E+30 33000 Expenditure on TV $F$6 Usage Expenditure 30000 -0.89 30000 33000 30000 on Newspaper $F$7 Usage 15000 1E+30 5000 Number of Radio spots $F$8 Usage 375 100 275 1E+30 QUESTION Determine the optimal solution
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