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LP problems in a spreadsheet
American auto is evaluating their marketing plan for the sedans, SUVs, and trucks they produce. A TV ad featuring this SUV has been developed. The company estimates that each showing of this commercial will cost $500,000 and increase sales of SUVs by 3%, but reduce sales of trucks by 1%, and have no effect of the sales of sedans. The company also has a print ad campaign developed that they can run in various nationally distributed magazines at a cost of $750,000 per title. It is estimated that each magazine title that the ads runs will increase the sale of sedans, SUVs, and trucks by 2%,1%,and 4%,respectivity. The company desires to increase sales of sedans, SUVs, and trucks by at least 3%, 14% and 4%, respectably, in the least cost manner. 1. Format a LP model for this question. 2. What is the optimal solution? Implement a spreadsheet model for this problem and solve it using solver.
Cost assigned to beginning work in process: Direct materials 30,000; conversion costs 5,000. Manufacturing costs incurred during April: direct materials 25,000; conversion costs, $65,000. Using the weighted average method.
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