Explanation:
Problem – 2:
Supermarket store chain has hired an advertising firm to determine the types and amount of advertising it should have for its stores. The three types of advertising available are Radio, Television commercials, and Newspaper advertisements. The retail chain desires to know the number of each type of advertisement it should purchase in order to maximize exposure. It is estimated that each ‘Ad’ or Commercial will reach the following potential audience and cost the following amount.
Type of Advertisement
Exposure
People/Ad or Commercial
Cost
In Birrs.
Television Commercial
20000
15000
Radio
12000
6000
Newspaper advertisement
9000
4000
The company must consider the following resource constraints:
The budget limit for advertisement is Br. 100,000.
The television station has time available for 4 commercials.
The radio station has time available for 10 commercials.
The newspaper has space available for 7 Ads.
The advertising agency has time and staff available for producing no more than a total of 15 commercials.
Formulate a LP model for the problem.