Introduction: The Flamingo Grill, an upscale restaurant in St.

Petersburg, Florida, aims

to plan an effective advertising campaign for the upcoming season. Haskell & Johnson
(HJ), the advertising firm hired by Flamingo's management team, provided insights and
recommendations regarding the allocation of the advertising budget across television,
radio, and online advertisements. The objective is to maximize the total exposure rating
while ensuring the campaign reaches at least 100,000 new customers. Additionally,
guidelines were set to balance the use of advertising media and allocate the budget
effectively.

Model Development:

1. Decision Variables:
• �1x1: Number of television advertisements
• �2x2: Number of radio advertisements
• �3x3: Number of online advertisements
2. Objective Function: Maximizing the total exposure rating:
Maximize90�1+25�2+10�3Maximize90x1+25x2+10x3
3. Constraints:
• Budget Constraint: 10,000�1+3000�2+1000�3≤279,00010,000x1
+3000x2+1000x3≤279,000
• Maximum Number of Ads: �1≤20x1≤20, �2≤30x2≤30, �3≤40x3≤40
• Budget Allocation Constraints: 10,000�1≥140,00010,000x1≥140,000,
3000�2≤99,0003000x2≤99,000, 1000�3≥30,0001000x3≥30,000
4. Piecewise Linear Functions:
• For television ads: �1=4000N1=4000 if �1≤10x1≤10, �1=1500N1=1500 if
�1>10x1>10
• For radio ads: �2=2000N2=2000 if �2≤15x2≤15, �2=1200N2=1200 if
�2>15x2>15
• For online ads: �3=1000N3=1000 if �3≤20x3≤20, �3=800N3=800 if
�3>20x3>20

Solution: Using Excel Solver, we find the optimal solution:

• Number of Television Advertisements (�1x1): 10

• Number of Radio Advertisements (�2x2): 20
• Number of Online Advertisements (�3x3): 20