Management Science Test

1. MEDIA SELECTION PROBLEM: The TTK Company has recently developed a

new karaoke machine, and has $150,000 to spend on advertising. The product is
to be initially test marketed in the Philadelphia area. The money is to be spent on
a TV advertising blitz during one weekend (consisting of Saturday and Sunday)
in April. There are three options available on both Saturday and Sunday: morning
advertising, afternoon advertising and evening news advertising. A mixture of one-
minute TV spots is desired. The goal of the campaign is to maximize the total
audience reached, while staying within budget.

Ad Type Estimated Audience Cost per Ad

Reached
Morning Ad 3000 $4000
Afternoon Ad 500 $800
Evening Ad 5000 $6000

TTK wants to take out at least one ad of each type (morning, afternoon, and evening). There are
ten daytime (= morning and afternoon) spots available on both Saturday and Sunday. There are
four evening spots available on Saturday. Further, there are only three Sunday evening ad
spots available. TTK wants to have at least 3 ads per day, but spend no more than $70,000 on
Saturday and no more than $100,000 on Sunday.

Define the following decision variables for the problem and answer the questions based upon
this information:

MSA = number of morning ads on Saturday

ASA = number of afternoon ads on Saturday

ESA = number of evening ads on Saturday

MSU = number of morning ads on Sunday

ASU = number of afternoon ads on Sunday

ESU = number of evening ads on Sunday