Question: This case continues Case 3 4 involving an advertising campaign for
This case continues Case 3.4 involving an advertising campaign for Super Grain Corporation’s new breakfast cereal. The analysis requested for Case 3.4 leads to the application of linear programming. However, certain assumptions of linear programming are quite questionable in this situation. In particular, the assumption that the total profit from the introduction of the breakfast cereal is proportional to the total number of exposures from the advertising campaign clearly is only a rough approximation. To refine the analysis, both a general nonlinear programming model and a separable programming model need to be formulated, applied, and compared.
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