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Linear Optimization in Advertising and Production

This document contains two questions regarding linear optimization problems. Question 1 involves maximizing advertising exposure within a $25,000 budget by allocating time between radio and television, with the constraint that at least 75% of time must go to television. Question 2 involves maximizing profit from producing standard and deluxe desks given constraints on available pine, oak, and labor hours. The questions ask to formulate the decision variables, objective functions, and constraints in verbal and mathematical statements.

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Umamah Halim
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41 views1 page

Linear Optimization in Advertising and Production

This document contains two questions regarding linear optimization problems. Question 1 involves maximizing advertising exposure within a $25,000 budget by allocating time between radio and television, with the constraint that at least 75% of time must go to television. Question 2 involves maximizing profit from producing standard and deluxe desks given constraints on available pine, oak, and labor hours. The questions ask to formulate the decision variables, objective functions, and constraints in verbal and mathematical statements.

Uploaded by

Umamah Halim
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Lahore School of Economics

Assignment - Linear Optimization

BBA IV – Introduction to Decision Analysis

Winter 2023

Q1. A brand manager for ColPal Products must determine how much time to allocate between
radio and television advertising during the next month. Market research has provided estimates
of the audience exposure for each minute of advertising in each medium, which it would like to
maximize. Costs per minute of advertising are also known, and the manager has a limited budget
of $25,000. The manager has decided that because television ads have been found to be much
more effective than radio ads, at least 75% of the time should be allocated to television.
Suppose that we have the following data:
Type of Ad Exposure/Minute Cost/Minute
Radio 350 $400
TV 800 $2,000

a. Identify
the decision variables, objective function, and constraints in simple verbal expressions.
b. Mathematically formulate a linear optimization model.

Q2.
Burger Office Equipment produces two types of desks, standard and deluxe. Deluxe desks have
oak tops and more-expensive hardware and require additional time for finishing and polishing.
Standard desks require 70 board feet of pine and 10 hours of labor, whereas deluxe desks require
50 board feet of pine, 20 square feet of oak, and 18 hours of labor. For the next week, the
company has 5,000 board feet of pine, 750 square feet of oak, and 400 hours of
labor available. Standard desks net a profit of $250, and deluxe desks net a profit of $350. All
desks can be sold to national chains such as Staples or Office Depot.
a. Identify the decision variables, objective function, and constraints in simple verbal statements.
b. Mathematically formulate a linear optimization model.

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