Operations Management: Other Operations Management Problems – #29459

Question: Question 3: The advertising director for a hardware company with a chain of four retail stores is considering two media possibilities: One plan is for a series of half-page advertisements in the Sunday newspaper, and the other is for advertising time on television. The stores are expanding their do-it-yourself tools, and the advertising director is interested in an exposure level of at least 40% within the city and 60% in the suburban areas. The TV viewing time under consideration has an exposure rating per spot of 5% in city homes and 3% in suburban homes. The Sunday newspaper has corresponding exposure rates of 4% and 3% per ad. The cost of a half-page advertisement is $925; a television spot costs $2,000. The advertising director would like to select the least costly advertising strategy that would meet desired exposure levels.

a) Show the decision variables (0.5 mark)

b) Show the objective function (0.5 mark)

c) Show and name the constraints in standard form (suitable for using Excel)* (1 mark)

*Constraints must be shown in ‘standard form’ as required by the question. You also need to do this in the exam. Note X’s are on the LHS of the equation and numbers are on the RHS.

d) Imagine you have been hired by the advertising director to solve the problem by using Excel. Do so and write a conclusion of your findings for the director. (2 marks)


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