Mayoral Candidate Ad Budget Optimization
Translated by
ScribdTranslationsMayoral Candidate Ad Budget Optimization
Translated by
ScribdTranslationsThe mayoral candidate in a small town allocated $40,000 for last-minute advertising.
days before the election. Two types of ads will be used: radio and television. Each radio ad
It costs $200 and reaches about 3,000 people. Each television ad costs $500 and reaches an estimated
7,000 people. In the planning of the propaganda campaign, the head of the campaign wants to reach so many.
people as much as possible, although it has established that at least 10 ads of each type must be used.
Likewise, the number of radio ads must be at least as large as the number of ads
television. How many ads of each type should be used? How many people will they reach?
Función Objetiva: Maximizar la Audiencia M=3000X +7000Y
Subject to the restrictions:
Decision Variables:
X: Number of radio ads. Cost: 200X + 500Y ≤ 40000
Number of television ads.
Restrictions: Radio Ads: X ≥ 10
Budget allocated for advertising. Television Ads: Y ≥ 10
Number of people reached by the advertisement. Radio and Television: X ≥ Y X - Y ≥ 0
No negativity: X, Y ≥ 0
Resumen de Datos:
Radio (X) Television (Y) Type of Total of
Restriction Resource
Ad Cost 200 500 At least 40000
Number of 3000 7000 At least
People
Radio At least 10
Television At least 10
Coordinates Replacement Table:
Vertices Axis X Axis Y FO= M=3000X +7000Y
A 10 10 3000(10)+7000(10)= 100000
B 57.14 57.14 3000(57.14)+7000(57.14)=571400
C 175 10 3000(175)+7000(10)=595000
Solution:
The chart tells us what should be done.
175 radio ads and 10 ads of
television to be able to have an audience
estimated at 595,000 people.
7-17 The corporation Outdoor Furniture manufactures two products, benches and picnic tables, for use in
gardens and parks. The company has two main resources: its carpenters (labor) and the
supply of redwood for furniture manufacturing. During the next production cycle, they are
1,200 hours of labor are available according to the union. The company also has a
inventory of 3,500 feet of good quality redwood. Each bench that produces Outdoor Furniture requires 4
labor hours and 10 feet of sequoia, while each picnic table takes 6 hours of labor
work and 35 feet of sequoia. The finished benches will yield a profit of $9 each; and the tables a profit
at $20 each. How many benches and tables should Outdoor Furniture manufacture to achieve the highest profit?
Is it possible? Use the graphical method of the LP.
Subject to restrictions:
Objective Function: Maximize Utility U= 9x+20y
Decision Variables: Labor: 4X + 6Y ≤ 1200
X: Number of banks produced.
Y: Number of picnic tables produced.
Wood supply: 10X + 35Y ≤ 3500
Restrictions: No negativity: X, Y ≥ 0
Available labor hours.
Available quantity of high-quality redwood.
Resumen de Datos:
Banks (X) Picnic Tables Type of Total of
(Y) Restriction Resources
Labor 4 hours 6 hours Requires 1200 hours
Supply of 10 feet of 35 feet of Requires 3500 feet of
wood secoya secoya secoya
Utility $9 $20
Coordinate Replacement Table:
Vertices Axis X Axis Y FO= U=9X +20Y
A 262.5 25 9(262.5) + 20(25) = 2862.5
B 0 100 9(0)+20(100)=2000
C 300 0 9(300)+20(0)=2700
Solution:
The graph tells us that at vertex A
to maximize utility, one should
produce 262.6 banks, but that is not
possible since 262 cannot be done.
middle banks. At the vertex B and C
they mention not to produce one of the
products so it wouldn't be a solution
7-18 El decano del Western College of Business debe planear la oferta de cursos de la escuela para el
Fall semester. The demands of the students make it necessary to offer a minimum of 30 courses.
of undergraduate and 20 of graduate during the semester. The contracts of the professors also state that
offer at least 60 courses in total. Each undergraduate course taught costs the university a
an average of $2,500 in teacher salaries, and each graduate course costs $3,000. How many courses of
undergraduate and postgraduate programs should be offered in the fall, so that the total salaries of the teaching staff
reduce to a minimum?
Función Objetiva: Minimización: Z= 2500x+3000y
Decision Variables:
X: Number of undergraduate courses to be offered in the fall.
Number of graduate courses to be taught in the fall.
Restrictions:
The number of courses according to the professors' contracts must be at least 60 in total.
Resumen de Datos:
Courses of Courses of Total de Cursos
Bachelor's degree (X) Graduate Studies (Y)
Cost of Salaries $2500 $3000
Courses Minimum 30 Minimum 20
Courses Courses
At least 60
Subject to restrictions:
Coordinate Replacement Table: Bachelor's degree courses: x ≥ 30
Vertices X Axis Y Axis FO = Z = 2500x + 3000y Graduate Courses: y ≥ 20
A 30 30 2500(30)+3000(30)=165000
B 40 20 2500(40) + 3000(20) = 160000 Total Courses: x + y ≥ 60
C
No negativity: X, Y ≥ 0
Solution:
The graph tells us that the solution is
find at vertex B having 40 courses
of bachelor's degree and 20 postgraduate courses
it would reduce spending on
salaries at $160,000.
7-19 The corporation MSA Computer manufactures two models of minicomputers, Alpha 4 and Beta 5. The
The company hires five technicians, who work 160 hours each month, in its assembly line. The management
emphasizes that full employment (that is, the 160 hours of time) should be maintained for each worker during the
operations for the next month. It requires 20 hours of work to assemble each Alpha 4 equipment and 25 hours
to work on assembling each Beta 5 model. MSA wants to produce at least 10 Alpha 4 and at least 15
Beta 5 during the production period. The Alpha 4 generate $1,200 profit per unit, and the Beta 5
they produce $1,800 each. Determine the most profitable number of each model of minicomputer that is
should produce during the next month.
Objective Function:
Decision Variables:
Restrictions:
Summary of Data:
The Texas lottery winner has decided to invest $50,000 a year in the stock market. He thinks
acquire shares of a petrochemical company and a utility company. Although a goal to
The long-term goal is to achieve the highest possible return, considering the risks involved in the purchase of the
actions. A risk index on a scale of 1-10 (where 10 is the most risky) is assigned to each of the
two stocks. The total risk of the portfolio is obtained by multiplying the risk of each of the stocks.
for the money invested in that action. The following table provides a summary of the profitability and risk:
Action Estimated Performance Risk Index
Petrochemical 12% 9
Public Services 6% 4
The investor wants to maximize the return on investment, but the average risk index of the
Investment should not be greater than 6. How much should I invest in each stock? What is the average risk of
this investment? What is the estimated return on this investment?
Objective Function:
Decision Variables:
Restrictions:
Resumen de Datos:
7-21 With reference to the Texas lottery situation from problem 7-20, let us assume that the
The investor has changed their attitude towards investment and wants to consider the risk more.
investment. Now the investor wants to minimize the risk of the investment, as long as it
generate at least 8% yield. Formulate this as a LP problem and find the
optimal solution. How much should be invested in each stock? What is the average risk of this?
investment? What is the estimated return on this investment?
Objective Function:
Decision Variables:
Restrictions:
Summary of Data: