Department store plans to schedule annual advertising

Assignment Help Operation Management

Reference no: EM132239060

A department store plans to schedule its annual advertising. The total budget is set at $200,000. The store can purchase local radio spots at $100 per spot, local television spots at $500 per spot and local newspaper advertising at $200 per ad. The payoff from each advertising medium is a function of its audience size and audience characteristics. The generally accepted objective criterion for advertising is audience points, reflected in the following table:

Medium Points

Radio 30 per spot

Television 150 per spot

Newspaper 150 per ad

The president of the firm has established the following goals for the campaign:

1. The total budget should not exceed $200,000.

2. Meet the contract with the local television station that requires that the firm spend at least $30,000.

3. The corporate advertising policy prohibits annual newspaper ad expenditures in excess of $50,000.

4. Maximize the audience points for the advertising campaign. The president would like 1,000,000 audience points

The president has established unit weights on the goals of 10, 6, 3 and 1 for the goals 1 through 4, respectively.

Formulate a goal program to solve this problem. Include an objective function and all constraints.

Reference no: EM132239060

Questions Cloud

Mortar part of organization with their internet business : What are some benefits of integrating the brick and mortar part of an organization with their Internet business? What are some reasons not to?

Analyze business model attractiveness : Competitive Strategy - ISB PGP MFAB - Analyze business model attractiveness using CLV modeling approach - components and differences using the business model

Liability rules each work to enforce property rights : How do property rules and liability rules each work to enforce property rights? (Examples may be useful)

Transnational subsidiary and international division : Definitions the Minireplica subsidiary-Transnational subsidiary and International division-Foreign subsidiaries.

Department store plans to schedule annual advertising : A department store plans to schedule its annual advertising. The total budget is set at $200,000.

During what time period was the model developed : What is the intended goal of corrections administrations that utilize the model? During what time period was the model developed?

Window of opportunity in agenda setting : This week we learn about the 3 streams coming together in a window of opportunity in Agenda Setting.

Bureaucratic control system and output control system : Definitions the Coordination system-Bureaucratic control system and Output control system-Cultural control system.

What are the communitys typical behaviors : What types of human nature factors within the community might lead to and require improvisation from an emergency manager?

User Account

All Pages