LP problem
The advertising director for Karisma, a chain of four retail stores on Alexandria's north side, is considering three media possibilities: 1- Ads in the Ahram newspaper, 2- ads in a local UGO trade magazine that is distributed free to all houses in the city and suburbs, and 3- ads on a local Alex TV station. The stores are expanding their lines of Do -It- Yourself tools and the advertising director is interested in a total new customer exposure level of at least 50% within the city and 60% in the suburbs. Each TV ad has a new-customer exposure level of 5% in the city and 3% in the northwest suburbs. The newspaper ads have corresponding exposure levels per ad of 3.5% and 3%, while the trade magazine has corresponding exposure levels per ad of 0.5% and 1%. The relevant costs are $1000 per newspaper ad, $300 per trade magazine ad, and $2000 per TV ad. So that all three types of media are used, Karizma would like to ensure that no single medium consumes more than 45% of the total amount spent. Karizma would like to select the least costly advertising strategy that would meet desired exposure levels. Formulate the model using LP and solve it using Excel. [newspapers ads = 9, magazine ads = 30, TV = 1, Cost $20,000
