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A Discount Appliance Company Is Planning to Advertise Extensively Before

Question 37

Essay

A discount appliance company is planning to advertise extensively before opening a new store. It has allocated $240,000 for advertising. The objective of the company is to maximize the total number of customers exposed to the firm's ads. Formulate a linear programming problem for the company given the information provide and find the optimal solution.
 TYPE OF COST PER AD  CUSTOMERS (1000s)  MAXIMUM  ADVERTISING($1000 s) EXPOSED TO EACH AD NUMBER OF ADS Radio (R)62020 Television (T)164015\begin{array}{l}\begin{array}{cccc}\text { TYPE OF }&\text {COST PER AD } & \text { CUSTOMERS (1000s) } &\text { MAXIMUM }\\ \text { ADVERTISING}& (\$ 1000 \mathrm{~s})&\text { EXPOSED TO EACH AD}&\text { NUMBER OF ADS}\\ \hline \text { Radio }(\mathrm{R}) & 6 & 20 & 20 \\\text { Television }(\mathrm{T}) & 16 & 40 & 15\end{array}\end{array}

Correct Answer:

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Maximize: Z = 20R + 40T + 5M + 10N
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