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Formulate the Linear Program Model for Acme Inc.

Assume Acme Inc. has hired you to be the product manager for their Segways in the Zambia division. Part of your responsibilities is to determine how to promote Segways in Kitwe for the coming month. You have decided that one segment of the promotional campaign will involve purchasing ad time on the four largest radio stations in Kitwe during the rush hour. You have gathered the information in the table below to determine how many ads should be purchased on each station during the five to six PM rush hour during the weekdays. The first row indicates the cost per ad in Kwachas. Your radio advertising budget is limited to 5,000 Kwachas. The second row provides estimated audience (in thousands) during the rush hour based on Arbitron surveys. You have decided that a maximum of 25 ads can be place on Radio Station 111.5. In addition, the President of Zambia has 40% interest in the ownership of 1460. Therefore you have decided it might be best to make sure that at least 20% of the total number of ads purchased should be for station 1460 AM. Formulate the LP model to maximize the total audience exposure.

Radio Station
106.1 FM 111.5 FM 1340 AM 1460 AM

Cost / ad 100 80 40 50
Exposures / ad 350 330 130 150

How many ads should be placed on 106.1? ___________

How many ads should be placed on 111.5? ___________

How many ads should be placed on 1340.6? ___________

How many ads should be placed on 1460? ___________

What is the maximum audience exposure? ___________

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Solution Summary

A complete, neat and step-by-step solution is provided in the attached Excel file.

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