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PROBLEM    02 – 0026:      The Reggio Advertising Company wishes to plan an
                                                advertising campaign in three different media--television,
                                                radio, and magazines. The purpose of the advertising
                                                program is to reach as many potential customers as
                                                possible. Results of a market study are given below:
 
Television
Day Prime
Time Time Radio Magazines
Cost of an advertising $ 40,000 $ 75,000 $ 30,000 $ 15,000
unit
Number of potential 400,000 900,000 500,000 200,000
customers reached
 per unit
Number of women 300,000 400,000 200,000 100,000
customers reached
per unit
 
                                                The company does not want to spend more than $800,000
                                                on advertising. It further requires that (1) at least 2 million
                                                exposures take place among women; (2) advertising on
                                                television be limited to $500,000; (3) at least 3 advertising
                                                units be bought on daytime television, and two units during
                                                prime time; and (4) the number of advertising units on radio
                                                and magazine should each be between 5 and 10. Formulate
                                                into a linear programming problem.
 
Solution:                    Let x1, x2, x3, and x4 be the number of advertising units bought in
                        daytime television, prime-time television, radio, and magazines,
                        respectively.
                                    The total number of potential customers reached (in thousands)
                        = 400x1 + 900x2 + 500x3 + 200 x4. The restriction on the advertising
                        budget is represented by:
                                    40,000x1 + 75,000x2 + 30,000x3 + 15,000x4 ≦ 800,000.
                        The constraint on the number of women customers reached by the
                        advertising campaign becomes:
                                    300,000x1 + 400,000x2 + 200,000x3 + 100,000x4 ≧ 2,00,000.
                        The constraints on television advertising are:
                                                40,000x1 + 75,000x2 ≦ 500,000
                                                            x1 ≧ 3
                                                            x2 ≧ 2.
                        Since advertising units on radio and magazines should each be between 5
                        and 10, one gets the following constraints:
                                    5 ≦ x3 ≦ 10
                                    5 ≦ x4 ≦ 10.
                        The complete linear programming problem with some minor simplification
                        is given below:
                        Maximize:      Z = 400x1 + 900x2 + 500x3 + 200x4
                        Subject to:     40x1 + 75x2 + 30x3 + 15x4   ≦ 800
                                                30x1 + 40x2 + 20x3 + 10x4   ≧ 200
                                                40x1 + 75x2                            ≦ 500
                                                    x1                                         ≧ 3
                                                            x2                                 ≧ 2
                                                                        x3                     ≧ 5
                                                                        x3                     ≦ 10
                                                                                    x4         ≧ 5
                                                                                    x4         ≦ 10.