Your local Chamber of Commerce periodically sponsors public service seminars. In your role as the marketing manager, you are putting together an advertising plan for this year’s program of events. The promotional budget is $25,000. Advertising alternatives include television, radio and newspaper. You have obtained the following estimates for the size of an audience and cost for each type of advertisement:
Audience per ad
Cost per ad
Past experience suggests that at most ten TV advertisements should be aired. Similarly, no more than 15 newspaper ads will be placed. For radio, maximum usage is set at 15 advertisements. You must find the mix of advertisements that will reach a maximum audience. You have decided to use linear programming to obtain a solution to the problem before you.
Give the full mathematical model for this problem.
a. (2 marks) What are the decision variables for this problem?
b. (2 marks) Using decision variables identified in part (a), formulate the objective function for this problem. Is the quantity of interest to be maximized or minimized? Explain briefly.