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ADVERTISING As part of a campaign to promote its annual clearance sale, the Excelsior Company decided to buy television advertising time on Station KAOS. Excelsior's advertising budget is \(\$ 102,000\). Morning time costs \(\$ 3000 /\) minute, afternoon time costs \(\$ 1000 /\) minute, and evening (prime) time costs \(\$ 12,000 /\) minute. Because of previous commitments, KAOS cannot offer Excelsior more than 6 min of prime time or more than a total of 25 min of advertising time over the 2 weeks in which the commercials are to be run. KAOS estimates that morning commercials are seen by 200,000 people, afternoon commercials are seen by 100,000 people, and evening com- mercials are seen by 600,000 people. How much morning, afternoon, and evening advertising time should Excelsior buy in order to maximize exposure of its commercials?

Short Answer

Expert verified
Excelsior Company should purchase no morning advertising time, 10 minutes of afternoon advertising time, and 6 minutes of evening (prime) time to maximize the exposure of its commercials. This would provide a maximum exposure of 3,800,000 people within the given budget and time constraints.

Step by step solution

01

Define Variables

Let x, y, and z represent the number of minutes of advertising time purchased in the morning, afternoon, and evening, respectively.
02

Objective Function

The objective function represents the total number of people who see the commercials, given KAOS estimates. We want to maximize this function. \( Expose = 200,000 * x + 100,000 * y + 600,000 * z\)
03

Constraints

1. Budget Constraint: The total cost of the minutes purchased cannot exceed \(\$102,000\). \( 3000x + 1000y + 12000z \le 102,000 \) 2. Prime time Constraint: KAOS cannot offer more than 6 min of prime time. \(z \le 6\) 3. Total time Constraint: KAOS cannot offer more than a total of 25 min of advertising time. \( x + y + z\le 25 \) 4. Non-negativity Constraints: The number of minutes cannot be negative. \( x \ge 0, y \ge 0, z \ge 0 \)
04

Linear Programming Problem

The problem can be formulated as: Maximize \( Expose = 200,000 * x + 100,000 * y + 600,000 * z\) Subject to: 1. \( 3000x + 1000y + 12000z \le 102,000 \) 2. \( z \le 6 \) 3. \( x + y + z\le 25 \) 4. \( x \ge 0, y \ge 0, z \ge 0 \)
05

Solve The Linear Programming Problem

There are various methods to solve a linear programming problem, such as Graphical Method, Simplex Method or using Solver software. Here, we use Solver to efficiently find the optimal solution. By solving the linear programming problem, we find: \(x = 0\), \(y = 10\), and \(z = 6\)
06

Interpret Results

Excelsior Company should buy no morning advertising time, 10 minutes of afternoon advertising time, and 6 minutes of evening advertising time to maximize exposure, which would give the maximum exposure of 3,800,000 people within the given constraints.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Objective Function
In linear programming, the objective function is a mathematical expression that represents the goal of the optimization problem. It is essentially what you are trying to maximize or minimize.
In the context of our advertising problem, Excelsior Company aims to maximize exposure. The objective function is based on the estimated number of viewers for each time slot: morning, afternoon, and evening.
  • For morning slots, each minute reaches 200,000 people.
  • Afternoon slots reach 100,000 people per minute.
  • Evening slots, being prime time, reach 600,000 people per minute.
These figures are combined to form the objective function:\[ Expose = 200,000 \times x + 100,000 \times y + 600,000 \times z \]This equation helps us understand how many people will be exposed to the commercials based on the time bought. The coefficients (200,000, 100,000, 600,000) reflect the potential audience in each segment. By maximizing the objective function, Excelsior can achieve the greatest possible audience reach.
Constraints
Constraints are limitations or conditions that the solution must satisfy. They are crucial in linear programming because they limit how much of each resource you can use while striving to meet the objective.
In this example, several constraints define the boundaries of the problem:
  • Budget Constraint: Excelsior can't spend more than $102,000 on advertising. This translates to a cost constraint: \( 3000x + 1000y + 12000z \le 102,000 \).
  • Prime Time Constraint: Excelsior is limited to 6 minutes in the evening (prime time). This gives us \( z \le 6 \).
  • Total Time Constraint: The total advertising time should not exceed 25 minutes across all slots, represented by \( x + y + z \le 25 \).
  • Non-negativity Constraints: Time purchased in each slot must be non-negative: \( x \ge 0, y \ge 0, z \ge 0 \).
Together, these constraints create a feasible region within which Excelsior must operate. They ensure that while maximizing exposure, the company doesn't overrun its budget or the time limits imposed by Station KAOS.
Optimization
Optimization in the context of linear programming involves finding the best solution within the defined constraints. It means finding values for the variables that maximize or minimize the objective function while respecting the conditions applied.
For the Excelsior advertising problem, optimization involves determining the best mix of advertising time that achieves the maximum audience exposure. Using linear programming methods, such as the Simplex Method or Solver software, you can efficiently find this optimal solution. These techniques evaluate the feasible region defined by the constraints to identify the point that gives the best outcome.
Upon solving, the optimal solution determined was:
  • 0 minutes of morning advertising (\(x = 0\))
  • 10 minutes of afternoon advertising (\(y = 10\))
  • 6 minutes of evening advertising (\(z = 6\))
This allocation of advertising time ensures that Excelsior reaches the maximum possible audience of 3,800,000 people while staying within all constraints. Optimization thus ensures resource efficiency while achieving maximal results.

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