Blitz Beer has allocated $10,000 for radio advertising in Gotham City and must d
ID: 390624 • Letter: B
Question
Blitz Beer has allocated $10,000 for radio advertising in Gotham City and must determine the placement of spot ads that will maximize increased sales. Top-40 stations attract a heavier beer-drinking audience than golden-oldie stations do, but top-400 stations also charge more for each spot. The following data apply.
Station
Cost per spot
Sales Increase per Spot
Spots Available
Format
Unlimited
At least 25% of the spots must be placed with golden-oldie stations. Formulate Blitz’s problem as a linear program.
Station
Cost per spot
Sales Increase per Spot
Spots Available
Format
KBAT $100 $300 30 Top-40 WJOK 50 120 Unlimited Golden-oldie WROB 75 150Unlimited
Golden-oldie KPOW 150 400 40 Top-40Explanation / Answer
Assume that X1, X2, X3 and X4 are the number of spots aloocated to each of the four category viz. KBAT, WJOK,KROB and KPOW respectively.
Objective function
Max 200X1+70X2+75X3+250X4
subject to
100X1+50X2+75X3+150X4 <=10000
X1<=30,
X4<=40
X2+X3 => 0.25 ( X1+X2+X3+X4)
and X1, X2, X3, X4 =>0
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