● on billboards and newspapers together must not exceed the amount spent on TV ads. While fund- raising is still continuing, the monthly budget for advertising has been set at $15,000. How many ads of each type should be placed to maximize the total number of people reached? 8-7 (Media selection problem) The advertising direc- tor for Diversey Paint and Supply, a chain of four retail stores on Chicago's North Side, is consider- ing two media possibilities. One plan is for a series of half-page ads in the Sunday Chicago Tribune newspaper, and the other is for advertising time on Chicago TV. The stores are expanding their lines of do-it-yourself tools, and the advertising director is interested in an exposure level of at least 40% within the city's neighborhoods and 60% in northwest sub- urban areas. The TV viewing time under consideration has an exposure rating per spot of 5% in city homes and 3% in the northwest suburbs. The Sunday newspaper has corresponding exposure rates of 4% and 3% per ad. The cost of a half-page Tribune advertisement is $925; a television spot costs $2,000. Diversey Paint would like to select the least costly advertising strategy that would meet desired exposure levels. (a) Formulate using LP. (b) Solve the problem. 8-8 (Automobile leasing problem) Sundown Rent-a- Car, a large automobile rental agency operating in the Midwest, is preparing a leasing strategy for the next six months. Sundown leases cars from an au- tomobile manufacturer and then rents them to the public on a daily basis. A forecast of the demand for Sundown's cars in the next six months follows: ONTH MARCH APRIL MAY JUNE JULY emand 420 400 430 460 470 AUGUST 440 Cars may be leased from the manufacturer for either three, four, or five months. These are leased on the first day of the month and are returned on the last day of the month. Every six months the automobile SEC
● on billboards and newspapers together must not exceed the amount spent on TV ads. While fund- raising is still continuing, the monthly budget for advertising has been set at $15,000. How many ads of each type should be placed to maximize the total number of people reached? 8-7 (Media selection problem) The advertising direc- tor for Diversey Paint and Supply, a chain of four retail stores on Chicago's North Side, is consider- ing two media possibilities. One plan is for a series of half-page ads in the Sunday Chicago Tribune newspaper, and the other is for advertising time on Chicago TV. The stores are expanding their lines of do-it-yourself tools, and the advertising director is interested in an exposure level of at least 40% within the city's neighborhoods and 60% in northwest sub- urban areas. The TV viewing time under consideration has an exposure rating per spot of 5% in city homes and 3% in the northwest suburbs. The Sunday newspaper has corresponding exposure rates of 4% and 3% per ad. The cost of a half-page Tribune advertisement is $925; a television spot costs $2,000. Diversey Paint would like to select the least costly advertising strategy that would meet desired exposure levels. (a) Formulate using LP. (b) Solve the problem. 8-8 (Automobile leasing problem) Sundown Rent-a- Car, a large automobile rental agency operating in the Midwest, is preparing a leasing strategy for the next six months. Sundown leases cars from an au- tomobile manufacturer and then rents them to the public on a daily basis. A forecast of the demand for Sundown's cars in the next six months follows: ONTH MARCH APRIL MAY JUNE JULY emand 420 400 430 460 470 AUGUST 440 Cars may be leased from the manufacturer for either three, four, or five months. These are leased on the first day of the month and are returned on the last day of the month. Every six months the automobile SEC
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
Related questions
Question
Transcribed Image Text:on billboards and newspapers together must not
exceed the amount spent on TV ads. While fund-
raising is still continuing, the monthly budget for
advertising has been set at $15,000. How many ads
of each type should be placed to maximize the total
number of people reached?
8-7 (Media selection problem) The advertising direc-
tor for Diversey Paint and Supply, a chain of four
retail stores on Chicago's North Side, is consider-
ing two media possibilities. One plan is for a series
of half-page ads in the Sunday Chicago Tribune
newspaper, and the other is for advertising time on
Chicago TV. The stores are expanding their lines of
do-it-yourself tools, and the advertising director is
interested in an exposure level of at least 40% within
the city's neighborhoods and 60% in northwest sub-
urban areas.
The TV viewing time under consideration has
an exposure rating per spot of 5% in city homes and
3% in the northwest suburbs. The Sunday newspaper
has corresponding exposure rates of 4% and 3% per
ad. The cost of a half-page Tribune advertisement is
$925; a television spot costs $2,000.
Diversey Paint would like to select the least
costly advertising strategy that would meet desired
exposure levels.
(a) Formulate using LP.
(b) Solve the problem.
8-8 (Automobile leasing problem) Sundown Rent-a-
Car, a large automobile rental agency operating in
the Midwest, is preparing a leasing strategy for the
next six months. Sundown leases cars from an au-
tomobile manufacturer and then rents them to the
public on a daily basis. A forecast of the demand for
Sundown's cars in the next six months follows:
CONTH MARCH APRIL MAY JUNE JULY AUGUST
emand 420 400 430 460 470
440
Cars may be leased from the manufacturer for
either three, four, or five months. These are leased on
the first day of the month and are returned on the last
day of the month. Every six months the automobile
SEC
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.