ASSIGNMENT

Case Problem 1: Planning an Advertising Campaign

GROUP:
NAMES
PART A: Decision Variables
List the variables and what they stand for – like a data dictionary

PART B: Formulation
 Objective Function: Explain briefly what it is that you are maximizing
 Give a label (extreme right) to each constraint. The label should give some idea
to the reader the relevance of the constraint
 Keep the labels in Red to separate them from the algebraic expressions

PART C: Solution
1. Optimum Objective Function Value: Enter the value and explain the function
whose optimum value is what it is

2. Optimal Solution

(Insert a table with two rows – Decision Variables in the 1 st row and the values in
the second. You could copy / paste from the Excel file)

PART D: Sensitivity Report Summary

(Start Part D on a new page)
(1. The last columns for both tables is an interval such as (a, b)
(2. The numbers should be correct up to 4th decimal place
(3. Use “Infinity” or “-Infinity” wherever required)
(4. In the second table, the second column should be the label which you put in the
formulation)

Table 1:
# Decision Variable Range of Optimality
1

Table 2:
# Constraint Shadow Price Range of Feasibility
1
PART E: The Five Items
(Start Part D on a new page)
Item 1
Advertising Schedule:
Media Number of Ads Budget

Totals

 Total Exposure Rating:

 Total New Customers Reached:

Item 2
Refer to Table 2 of Part D while responding to this item
Also compare the percentage increase in the budget to the corresponding
percentage increase in the total exposure

Item 3
Only consider the coefficients proposed by HJ Consultants. And, by referring to
Table 1 of Part D, identify where there may be some concern.

Item 4
You need to solve a new LPP. Give the new formulation in this this section without
any labelling. In the Excel file, create a new tab and solve the new problem. Give
the Advertizing Schedule in the table below.
FORMULATION

Advertising Schedule:
Media Number of Ads Budget

Totals
Item 5