Marketing Applications

1.Win Big Gambling Club promotes gambling junkets from a large Midwestern city to
casinos in the The Bahamas . The club has budgeted upto $8000 per week for local
advertising . The money is to be allocated among four promotional media: TV
spots,newspaper ads and two types of radio advertisements. Win Big’s goal is to reach the
largest possible high-potential audience through the various media. Table below presents the
number of potential gamblers reached by making use of advertisement in each of the four
media. It also provides the cost per advertisement placed and the maximum number of the ads
that can be purchased per week.

Win Big’s contractual agreements require that at least five radio spots to be placed each
week. To ensure a broad-scoped promotional campaign, management also insists that no
more than $ 1800 be spent on radio advertising every week.

Medium Audience reached Cost per Ad Maximum Ads per

per Ad week
TV Spot(1 minute) 5,000 $ 800 12
Daily newspaper(full- 8,500 $925 5
page ad)
Radio spot(30 2,400 $290 25
seconds,prime time)
Radio 2,800 $380 20
spot(1minute,afternoon
)

DIET PROBLEM
Q2.Consider two types of food stuffs say F1 and F2. Assume that these food stuffs contain
vitamins V1,V2 and V3 respectively. Minimum daily requirements of these vitamins are 1mg
of V1, 50 mg of V2 and 10 mg of V3. Suppose that the food stuff F1 contain 1mg of V1,100
mg of V2 and 10 mg of V3. Whereas foodstuff F2 contains 1mg of V1, 10 mg of V2 and 100
mg of V3. Cost of unit of F1 is Rs 1 and that of F2 is 1.5. Find the minimum daily diet that
would apply the body at least minimum requirement of each vitamin.
Production Planning Problem
Q.3 A firm makes two types of furniture chairs and tables. The contribution per each product
is calculated by the accounting department is Rs 20 per chair and Rs 30 per table. Both
products are processed on three machines M1, M2, and M3. The Time required(in hours) by
each product and the total time available per week on each machine are as follows.
 Machine Chair Table Available hours per
week
M1 3 3 36
M2 5 2 50
M3 2 6 60
How should the operations manager schedule his production in order to maximize
contribution?

Q.4 A company has three operational departments(weaving, processing and packing) with
capacity to produce three different types of clothes namely suitings, shirtings and woollen
yielding the profit Rs 2, Rs 4, and Rs 3 per meter respectively. One meter suiting requires 3
minutes 3 minutes in weaving , 2 minutes in processing and 1 minute in packing. Similarly
one meter of shirting requires 4 minutes in weaving, 1 minute in processing and 3 minutes in
packaging, while one meter woollen require 3 minutes in each department. In a week total on
time of each department is 60,40 and 80 hours of weaving,processing and packing
departments respectively. Formulate the linear programming problem to find the product mix
to maximize the profit.