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Introduction to Management Science - Hiller,Hiller - Chapter03

# Introduction to Management Science - Hiller,Hiller - Chapter03

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05/08/2013

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McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2008
3.1
Chapter 3 (Linear Programming: Formulation and Applications)
Super Grain Corp. Advertising-Mix Problem (Section 3.1)
3.2±3.5
Resource Allocation Problems (Section 3.2)
3.6±3.16
3.17±3.22
Mixed Problems (Section 3.4)
3.23±3.28
Transportation Problems (Section 3.5)
3.29±3.33
Assignment Problems (Section 3.6)
3.34±3.37
Applications of Linear Programming with Spreadsheets (UW Lecture)
3.38±3.57
These slides are based upon lectures to first-year MBA students at the University of Washington
that discuss the application and formulation of linear programming models (as taught by one of the
authors).
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2008
3.2
 Goal: Design the promotional campaign for Crunchy Start.
 The three most effective advertising media for this product are
± Television commercials on Saturday morning programs for children.
 The limited resources in the problem are
± Planning budget (\$1 million).
± TV commercial spots available (5).
 The objective will be measured in terms of the expected number of exposures.
Question: At what level should they advertise Crunchy Start in each of the
three media?
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2008
3.3
Cost and Exposure Data
Costs
Cost Category
Each
TV Commercial
Each
Each
\$300,000
\$150,000
\$100,000
Planning budget
90,000
30,000
40,000
Expected number of
exposures
1,300,000
600,000
500,000