Chapter 8 Linear Programming Applications Focus of This Chapter • Formulating a practical problem into a linear program. • Recall that “formulating” is to re-describe the problem in terms of linear program. • Formulating is “translating”, not “solving”! • Computer will do the “solving” part. Media Selection Medium TV Newspaper Radio (prime time) Radio (afternoon) Audience reached / ad 5,000 8,500 Cost / ad ($) 800 925 Max ads per week 12 5 2,400 290 25 2,800 380 20 • Budget up to $8,000 • At least 5 radio spots • Cost of radio ads is no more than $1,800 per week How many ads of each type should be used to max audience reached? Media Selection with reorganized data Medium TV Newspa per Radio (prime time) Radio (afternoon) Audience reached / ad 5,000 8,500 2,400 2,800 Cost / ad ($) $800 $925 $290 $380 Max ads per week 12 5 25 20 Others •At least 5 radio ads •Radio cost no more than 1,800 Budget per week $8,000 Marketing Research • How many peoples grouped in ‘age’ and ‘region’ should be surveyed to minimize total cost? • Requirements of survey: – – – – – At least 2,300 households in total At least 1,000 w/ ’30 or younger’ At least 600 w/ ’31-50’ At least 15% in ‘bordering states’ No more than 20% in ‘bordering states’ and ’51 or older’ • Cost per person surveyed: 30 or younger 31-50 50 or older Bordering Mexico $7.50 $6.80 $5.50 Not bordering Mexico $6.90 $7.25 $6.10 Region