Goal Programming
Harris Segal, Marketing director for the Upper Canada Power Corporation is about to begin an advertising campaign promoting energy conversation. In trying to budget between television and newspaper advertisements, he sets the following goals and assigns the weights shown.
1. The total advertising budget of $120,000 should not be exceeded. Weight = 100
2. There should be a mix of TV and newspaper ads, with at least 10 TV spots (costing
$5,000 each) and at least 20 newspaper ads (costing $2,000 each). Weight = 75 each.
3. The total number of people to read or hear the advertisements should be at least 9 million.
Weight = 40 per 100,000
Each television spot reaches approximately 300,000 people. A newspaper advertisement is read by about 150,000 persons.
(a) Formulate Segal's Goal Programming problem in algebraic form to find out how many of each type of ad to place.
(b) Solve using Excel Solver to find out how many of each type of ad to place. How many people, in total, will read or hear the advertisements?