Managerial Decision Support – Linear Programming (10pts)
The advertising director for Diversity Paint and Supply, a chain of four retail stores on Chicago’s North Side, is considering 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-your-self tools, and the advertising director is interested in an exposure level of at least 40% within the city’s neighborhoods and 60% in the northwest suburban areas.
The TV viewing time under consideration has an exposure rating 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 the half-page advertisement is $925: a television spot costs $2000.
Diversity Paint would like to select the least costly advertising strategy that would meet desired exposure levels.
Managerial Decision Support – Transportation/Assignment (10pts)
The Krampf Line Railway Company specializes in coal handling. On Friday, April 13, Krampf had empty carts at the following towns in the quantities indicated:
Town Supply of Cars
Morgantown 35
Youngstown 60
Pittsburg 26
By Monday, April 16, the following towns need coal cars as follows:
Town Demand for Cars
Coal Valley 30
Coaltown 45
Coal Junction 25
Coalsburg 20
Using a railway city-to-city distance chart, the dispatcher constructed a mileage table for the preceding towns. The result is as follows:
From/To Coal Valley/Coaltown/CoalJunction/Coalsburg
Morgantown 50 30 60 70
Youngstown 20 80 10 90
Pittsburg 100 40 80 30
Minimizing total miles over which cars are moved to new location, compute the best shipment of coal cars.