Top Toys is planning a new radio and TV advertising campaign. A radio commercial costs $300 and a TV ad costs $2000. A t
Posted: Sat Mar 19, 2022 6:00 pm
Top Toys is planning a new radio and TV advertising campaign. A
radio commercial costs $300 and a TV ad costs $2000. A total budget
of $20,000 is allocated to the campaign. However, to ensure that
each medium will have at least one radio commercial and one TV ad,
the most that can be allocated to either medium cannot exceed 80%
of the total budget. It is estimated that the first radio
commercial will reach 5000 people, with each additional commercial
reaching only 2000 new ones. For TV, the first ad will reach 4500
people, and each additional ad an additional 3000. How should the
budgeted amount be allocated between radio and TV?
(a) Formulate an LP model to answer to the question.
(b) Find the optimum solution using Excel solver or OPL. Attach
screenshots that show Excel setting or OPL code to solve the
LP.
radio commercial costs $300 and a TV ad costs $2000. A total budget
of $20,000 is allocated to the campaign. However, to ensure that
each medium will have at least one radio commercial and one TV ad,
the most that can be allocated to either medium cannot exceed 80%
of the total budget. It is estimated that the first radio
commercial will reach 5000 people, with each additional commercial
reaching only 2000 new ones. For TV, the first ad will reach 4500
people, and each additional ad an additional 3000. How should the
budgeted amount be allocated between radio and TV?
(a) Formulate an LP model to answer to the question.
(b) Find the optimum solution using Excel solver or OPL. Attach
screenshots that show Excel setting or OPL code to solve the
LP.