Chs. 8 and 9 – Multiple Decision Variables.

BUS 190                      Chs. 8 and 9 – Multiple Decision Variables.

1. What are some types of LP problems?

 

 

 

Media Selection Problem

 

Relax-and-Enjoy Lake Development Corporation is developing a lakeside community at a privately owned lake. Relax-and-Enjoy employed the advertising firm of Boone, Phillips, and Jackson (BP&J) to design the promotional campaign.

After considering possible advertising media and the market to be covered, BP&J recommended that the first month’s advertising be restricted to five media.

The quality rating is measured in terms of an exposure quality unit, a measure of the relative value of one advertisement in each of the media.

 

Table 9.5 – Advertising Media Alternatives for the Relax-and-Enjoy Lake Development Corporation

Advertising Media		Number of Potential Customers Reached	Cost ($) per Advertisement	Maximum Times Available per Month	Exposure Quality Units
1.	Daytime TV (1 min), station WKLA	1000	1500	15	65
2.	Evening TV (30 sec), station WKLA	2000	3000	10	90
3.	Website advertisement (banner ad)	1500	400	25	40
4.	Sunday newspaper magazine ( page color), The Sunday Press	2500	1000	4	60
5.	Radio, 8:00 a.m. or 5:00 p.m. news (30 sec), station KNOP	300	100	30	20

 

Relax-and-Enjoy provided BP&J with an advertising budget of $30,000 for the first month’s campaign. In addition, Relax-and-Enjoy imposed the following restrictions on how BP&J may allocate these funds: At least 10 television commercials must be used, at least 50,000 potential customers must be reached, and no more than $18,000 may be spent on television advertisements. What advertising media selection plan should be recommended?

 

 

1. What are the decision variables (Use NUN – Name, Units, Notation).

   Use the following for Decision Variables – complete the NUN.
   (e.g DTV = number of day time TV ads – this is notation and name.  And unit – times/month)

   DTV

ETV

W

SN

R

 

2. What are the objectives?

 

 

 

 

 

 

 

3. Which of the objectives are constraints, and which makes sense to be the objective function?

 

 

 

 

 

 

4. State the objective function in terms of the decision variables. Use Dimensional analysis to set it up. Dimension Analysis is the table and objectives / constraints written in LP format.

 

 

 

 

 

 

 

 

 

5. Give the constraints. Again, USE DIMENSIONAL ANALYSIS.

 

 

 

 

 

 

 

 

 

6. What is the answer? You will answer this using excel solver. (sensitivity and answer reports)