Scheduling

Television
Advertising Slots
at the National
Broadcast
Network

Group 5

Sohaib Arif 21110231

Tehreem Farima 21110192

Hassan Sultan 21110356

Amna Ghauri 21110302

Abdullah Shahzad 21110210

Zoya Adil 21110015

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Contents

Problem Summary.......................................................................................................................................2
Description of available data.......................................................................................................................2
Solution approach and Methodology...........................................................................................................3
Formulations................................................................................................................................................4
Decision variables....................................................................................................................................4
Objective function...................................................................................................................................4
Constraints..............................................................................................................................................5
Results.........................................................................................................................................................5
Analysis...................................................................................................................................................6
Tornado Diagram........................................................................................................................................7
What-If Analysis.........................................................................................................................................7
General benefits of our model (future inclinations).....................................................................................8
Limitations and Assumptions:.....................................................................................................................8
Primary assumptions...................................................................................................................................8
Recommendations and conclusion...........................................................................................................8
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Problem Summary

The National Broadcast Network (NBN) sells advertisement slots with duration of 15 and 30
seconds on its shows. The network sells advertising slots at rates based on a performance score
related to the popularity of a show, primarily determined by demographics and audience size.
TechCom, a software development firm wishes to spend its advertising budget of $600,000 by
buying slots on some shows of NBN namely, Bayside, Newsline, The Hour, Cops and Lawyers,
The Judge, Friday Night Football, and ER Doctor. TechCom wants at least 50% of the total
number of advertising slots it purchases to be on Newsline, The Hour, and Friday Night Football.
This is because it wants to target an older, more mature, upper-income audience that is likely to
include many high-tech businesspeople. It wants NBN to develop a 6-week sales plan starting
from 3rd week of October through November.

Description of available data

 Names of preferred shows, dramas, and sports coverage. (based on the demographics of
expected audience watching a show, advertisers make preferences. These preferences
indicate during which shows should the advertiser’s product be advertised.)
 Advertising slot duration: 15 to 30 seconds. This indicates for how long each
advertisement can be shown.
 TechCom’s advertisement budget: $60000
 Performance scores: These performances scored indicate how successfully the shows
target the desired segment of audience. These are based on several demographical as well
as psychographic factors.
 Advertising costs: based on the performance scores advertising rates are also set by the
network itself.
 Available inventory: The data about inventory availability of respective show slots has
been shared as well
 Weighting factor: As the total viewers vary according to the week of the year, a
weighting factor has been introduced. This factor incorporates the week of the show as
well as total expected audience during that week.
 The minimum and maximum number of available advertising slots during each of the 6
weeks has also been shared
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Solution approach and Methodology

Quantitative analysis is selected to be performed on the case provided. It allowed us to have a

scientific approach to managerial decision making where raw data is processed and manipulated
to produce meaningful information. Prescriptive analytics is being done through optimization
methods

The case is an interesting and useful application of integer programming model – specifically
binary integer programming. In these applications the variables allow for the selection of an item
(or activity) where a value of 1 indicates that the item is selected and a value of 0 indicates that
it is not. In our case it is the selection of respective slots for advertisement as being 1 or 0.
The case presents a Capital Budgeting Problem. We formulated the problem, developed a model
on excel and solved it using Simplex LP solver. Several zoom meetings and discussions were
done in the WhatsApp group before formulating and developing the model. The steps involved
included
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Formulations

The objective function of both NBN and the advertiser is the development of a sales plan, that
would maximize their total performance score.

Decision variables

XSW = Ad slot for show S, in week W (Value can only be 1 or 0, selected or not)
XSW is our decision variable as we must determine what show should we advertise upon and at
what week.

Objective function

Maximize Z where,
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14 6
Z=∑ . ∑ . PSW . x SW . gw
S=1 W=1

Where,
S = 1 (Bayside _30 seconds), 2(Bayside _15 seconds), 3(Newsline_ 30 seconds)…14(ER Doctor
_15 seconds)
W (week) = 1 (3rd week of October), 2 (4th week of October), 3 (1st week of November)… 6 (4th
week of November)
PSW = Performance score for show slot S, in week W
XSW = Ad slot for show S, in week W (Value can only be 1 or 0)
gW = Weighing factor for week W

Constraints

1. At least 50% of the total slots are on NL, TH and FNF show
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x3w+x4w+x5w+x6w+x11w+x12w ≥ 0.5.∑ . ∑ . x sw
S =1 W =1
2. A maximum one ad show per week for one ad slot (either 15 or 30 seconds)
3. Available slot inventory
∑6w=1xsw ≤ available inventory (s= 1 to 14)
4. Minimum and Maximum weekly slots
∑14s=1 xsw ≥ weekly minimum (w= 1 to 6), ∑14s=1 xsw ≤ weekly maximum (w= 1 to 6)
5. Budget = 600000$ (costs for advertisements will be weighted)
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∑ . ∑ .c SW . x SW . g w ≤ 600000
S =1 W =1
6. Binary constraint of decision variables.

Results

Solver found an integer solution, where all the constraints were being satisfied. The final value
came out to be 2079.6 of weighted performance score. Moreover, the weighted cost came out to
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be as $592950. This maximized value of objective function was obtained when the following
show slots were selected for respective shows, week and lengths

In 3rd week of October 15 second slot was selected in Friday Night Football.
In 4th week of October 30 second slot was selected in Cops and Lawyers
In 1st week of November two 30 second slots were selected in Newsline and Cops and Lawyers
respectively
In 2nd week of November, a 30 second slot was selected in Newsline, moreover, a 15 seconds slot
for Friday Night Football was also selected
In 3rd week of November, a 30 second slot was selected in Newsline, as well as a 15 second slot
was selected in Cops and Lawyers
In 4th week of October two 30 second slots were selected in Newsline and Cops and Lawyers, as
well as three 15 second slots were selected in Newsline, Cops and Lawyers and Er Doctor.
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Ad per show Inventory AvailableWeighted Cost ($1000s)

0 ≤ 3 0
0 ≤ 3 0
4 ≤ 4 229.6
1 ≤ 1 32.8
0 ≤ 3 0
0 ≤ 3 0
3 ≤ 4 180
2 ≤ 2 82.5
0 ≤ 2 0
0 ≤ 2 0
0 ≤ 4 0
2 ≤ 2 31.25
0 ≤ 3 0
1 ≤ 1 36.8
592.95
Weekly Advertisement Sum 1 1 2 2 2 5
Weight 1.1 1.2 1.2 1.4 1.4 1.6
Minimum 1 1 2 2 2 3
Maximum 4 5 5 5 5 5

Total N, TH and FNF Sign 50% of total ad

7 ≥ 6.5
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As evident from the two pictures above, none of the constraints have been violated for reaching
the optimal value. Each advertisement per week is within the defined range. Moreover, the total
number of advertisements on Newsline, The Hour and Friday Night Football is greater than 50%
of the total advertisements. This means that we most of our advertising is in shows which are
more likely to reach our target audience. It is also important to note that of the fourteen possible
show slots where we can advertise, we are only going for six. This reflects how specific our
choice of audience is.

Analysis
In accordance to the solver report, no slots are selected from The Judge, The Bayside or The
Hour. Maximum number of slots are selected from Cops and Lawyers followed by The
Newsline. The inventories of slots can thus be adjusted likewise in future ( based on more data
from past).
Seven 30 second slots are selected while six 15 seconds slots are chosen in the span of 6 weeks.
Maximum number of spots were chosen from week 4 of November. Both objectively and
intuitively it makes sense since this week had the maximum weighted score. Furthermore, to
investigate the sensitivity of the decision variables, we used Palisade add-in known as Top Rank
to generate a tornado diagram. This was done upon the guidance of our instructor, Mr. Tayyab,
since our decision variables are binary, we could not generate a reliable sensitivity report from
Solver otherwise.

Tornado Diagram

Tornado Graph of Weighted Performance Score

Impact by Input
C&L 30 seconds (J10)

0
1980

2000

2020

2040

2060

2080

2100

2120

2140

2160

2180

Value of Weighted Performance Score

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What-If Analysis

What-If Analysis Summary for Output Weighted Performance Score

Top 6 Inputs Ranked By Change in Actual Value
      Minimum Maximum  
Inp Inp
      Output ut Output ut Input
Ran Ce Chang Val Chang Val Base
k Input Name ll Value e (%) ue Value e (%) ue Value
1 Newsline 30 J6 1990 -4.31% 144 2169. 4.31% 176 160
seconds (J6) 2
2 C&L 30 J1 2025. -2.62% 122. 2134 2.62% 149. 136
seconds (J10) 0 2 4 6
3 C&L 15 J1 2054. -1.23% 76.5 2105. 1.23% 93.5 85
seconds (J11) 1 1 1
4 Newsline 15 J7 2063. -0.77% 90 2095. 0.77% 110 100
seconds (J7) 6 6
5 ER Doctor 15 J1 2066. -0.62% 72.9 2092. 0.62% 89.1 81
seconds (J17) 7 64 56
6 FnF 15 J1 2070. -0.46% 34.2 2089. 0.46% 41.8 38
seconds (J15) 5 1 1

As evident from the tornado diagram, Newsline – 30 second slot is the most sensitive variable
followed by Cops and Lawyers 30- and 15-seconds slot. The least sensitive variable among these
is the Friday Night Football – 15 seconds slot. This information is useful since in case
opportunity for additional investment in the advertising slots rises, we should go for Newsline
30-seconds to increase our performance score by the greatest factor. Similarly, the company
should rethink about advertising at Friday Night Football – 15 seconds slot since a 10% increase
in the input value for that slot results only in an increase of 0.46%.
Top rank makes tornado diagrams for only those variables that play some part towards the obj
function. Therefore we can’t see the impact of shows like The Judge, The Bayside or The Hour
in diagram: having no contribution on sensitivity.

General benefits of our model (future inclinations)

 Model accurately represents reality.

 Model helps the decision maker formulate problems.
 It provides us insight and information.
 In practical life it saves time and money in decision making and problem solving.
 It solves the complex problem in a timely fashion.
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 This model can be used to communicate problems and solutions to employees and
respective stakeholders of both NBN and Techcom.
 The model can be further expanded to other weeks of sales plan.
 It can be modified easily if values and weights change in accordance to situations

Limitations and Assumptions

 Since NBN had to let TechCom know exactly which advertisement slots to buy for a
specific show in any specific week, it seemed viable to use binary variables in this case;
the value of 1 to represent that the particular ad slot has been selected and 0 to represent
the opposite. The limitation faced with their use was the inability to perform sensitivity
analysis which prevented us from knowing the point at which those variables not making
a contribution towards the model would have made any had the option been available to
us.
 A sensitivity analysis was created regardless by relaxing the integer constraint but it is
difficult to rely on the resulting values as, according to the problem at hand, you either
pick one option or you don’t; there is no middle ground as you require an integer value
only e.g. it is not possible to have 0.5 of any given advertisement.
 The weighted cost in our model came out to be $592950 while the advertisement budget
provided by TechCom was of $600000 which still leaves us with $7050 to spend. This
value could have been utilized to the fullest had the limitation of having to use only 15
second or 30 second time slots not existed. If we had a more diverse range of time slots in
its place, we would’ve been able to achieve a higher overall score.

Primary assumptions
 Time value of money remains the same throughout the six-week sales plan.
 No unforeseen events occur during this time with regards to social, economic or political
factors that could potentially lead to the alteration of pre decided data already used in the
plan.
 State and federal legislation remains constant
 Technological breakthroughs remain consistent
 Techcom choses no other network for purchasing of slots other than NBN i.e. the
advertising budget remains exclusively for NBN slot purchase.

Recommendations and conclusion

 The $7050 left of the budget can be utilized in some other departments or projects. This
can help in improving the overall productivity of the organization even if by a small
margin. This money can also be provided to the employees as a bonus, this may boast
their morals leading to better efficiency at work.
 The inventories of respective shows should be kept by NBN keeping in mind their
demand. For shows and slots that have a higher demand from advertisers more inventory
slots should be kept.
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 Other qualitative measures should be taken to improve respective performance scores of

shows. Measures should be taken to ensure the shows match the desired audience
demographics and improve the audience strength of the show. The competing shows and
adjacent shows in the same time slot can be analyzed and the findings can be used to
improve own shows.
 Similarly, measures can be taken by the marketing and managing teams to improve
number of expected audiences. This will improve the respective weights and then the
performance scores. Months like October with lower weights can be either ignored or
worked more to improve audience traffic.
 NBN should also look into the advertisement slot mix it presents to its potential clients.
This is because only a few particular slots are attractive when compared to others. It
should come up with a mix that offers greater variety and more effective reach for its
future clients.