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Linear Optimization Model: Advertising

A brand manager of Company A must determine how much time to allocate to radio and TV advertising for next month. Market Research have given estimates of the audience exposure for each minute of advertising in each medium, which it would like to maximize. Costs of minutes of advertising are known, and the manager has a budget of $25,000. Because TV ads have been found to be much more effective then radio ads, the manager decided that at least 70% of the time should be allocated TV. We have the following data.

Type of Ad...........Exposure/Minute.........Cost/Minute
Radio............................150..........................$400
TV.................................800.........................$2000

1. What are the decision variable, objective function, and constraints
2. Using Excel, mathematically formulate a linear optimization model.

Solution Preview

Decision variables:
Here, the company needs to decide on amount of minutes to ...

Solution Summary

The solution discusses the linear optimization model specifically regarding advertising.

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