Problem 5:
Project Ploughshares periodically sponsors public service seminars and programs. Currently, promotional plans are under way for this year's program.
Advertising alternatives include television, radio, and newspaper. Audience estimates, costs, and maximum media usage limitations are as shown.
|
|
TV
|
Radio
|
Newspaper
|
|
Audience per ad
Cosa per ad (S)
______________________ 100,000
|
2.000
|
18,000
300
|
50.000
600
|
|
Maximum Media Usage
|
10
|
50
|
40
|
To ensure a balanced use of advertising media, radio advertisements must not exceed 50% of the total number of advertisements authorized. In addition, television should account for at least 10% of the total number of advertisements authorized.
Formulate a linear programming model for this problem. Solve with Excel solver. Attach ONE-PAGE solution printout and ONE-PAGE sensitivity analysis report printout to your homework. Answer the following questions.
a. If the promotional budget is limited to $18,200, how many commercial messages should be run on each medium to maximize total audience contact? What is the allocation of the budget among the three media, and what is the total audience reached?
b. By how much would audience contact increase if an extra $100 were allocated to the advertising budget? If possible, answer without resolving.