The question my professor asked was to apply Linear Programming to a business scenario.
A firm plans to use three different types of ads to attract potential customers to its product. The three ad choices are TV ads, Magazine ads, and Sunday Supplement.
The following table shows the number of potential customers one ad can reach:
TV Ads (TV) - Number of Potential Customers Attracted per Ad 1,500
Magazine Ads (M) - Number of Potential Customers Attracted per Ad 500
Sunday Supplement - (SS)Number of Potential Customers Attracted per Ad 500
There are two categories of spending per ad as below ($, Thousands):
Cost Per Ad ($Thousands) TV Ads (TV) Magazine Ads (M) Sunday Supplement (SS)
Ad Budget 250 100 100
Planning Budget 100 50 50
There are following constraints:
Total Ad Budget <= 3,500
Total Planning Budget <= 1,500
Total number of TV ads <= 5
The question is to find the optimal numbers of TV ads, Magazine ads, and Sunday Supplement, so that the total number of the potential customers attracted by these ads can be MAXIMIXZED. I don't understand how to use excel to implement a linear programming procedures. Can someone give me steps or tell me where to begin as starting point?