Royal Sea Advertising wants to run TV ads promoting its luxury cruises to high-income men, high-income women, and retirees. The company has decided to air its ads during prime-time, afternoon soap operas, and evening news. Table 1 below shows the estimated number of exposures (in millions) by each type of ad in each of the target audiences and the cost per ad.

The cost of this ad campaign cannot exceed $850,000.

The company would like to come as close as possible to achieving the following three goals:

Goal 1: Generate at least 45 million exposures among high-income men.

Goal 2: Generate at least 60 million exposures among high-income women.

Goal 3: Generate at least 50 million exposures among retirees.

Develop a SOLVER enabled spreadsheet based on the method of goal programming to determine how many ads in each of the three time slots (prime-time, soap operas, and evening news) in order to minimize a weighted sum of percentage deviations. Restrict the numbers of ads placed to integer values.

Comments and Hints:

Simplify your work by leaving all exposure measures in millions, e.g., for Prime Time/High-income men use 6 rather than 6,000,000 and by using all cost figures in $1000, e.g. set cost limit at 850 rather than 850,000.

Use only O's or l's for your under and over weight assignment. Be sure to think about the weights before you set them. Think about outcomes that are less desirable and outcomes that are desirable.

Transcribed Image Text:

High-income men High-income women Retirees Cost per ad Table 1: Number of exposures (in Millions) Prime Time Soap Operas 6 3 4 $120,000 3 4 7 $85,000 Evening News 6 4 3 $100,000 High-income men High-income women Retirees Cost per ad Table 1: Number of exposures (in Millions) Prime Time Soap Operas 6 3 4 $120,000 3 4 7 $85,000 Evening News 6 4 3 $100,000

Answer rating: 100% (QA)

M ax Campaign Amount 850 Table 1 Number of exposures i... View the full answer