Consider the Win Big Gambling Club media selection example discussed in section 3.3 (page 73) of Chapter 3. Use the Sensitivity Report for this LP model to answer the following questions.

What is the impact on the audience coverage under the following scenarios?

(a) Management approves spending $200 more on radio advertising each week.

(b) The contractual agreement to place at least five radio spots per week is eliminated.

(c) The audience reached per ad increases to 3,100.

(d) There is some uncertainty in the audience reached per TV spot. For what range of values for this OFC will the current solution remain optimal?

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Solver Sensitivity Report: Win Big Gambling Club Variable Cells Coll Namo SBS5 Number of units TV spots SCS5 Number of units Newspaper ads SDS5 Number of units Prime-time radio spots SES5 Number of units Afternoon radio spots Constraints Cell $F$8 Maximum TV $F$9 Maximum newspaper SFS10 Max prime-time radio SFS11 Max afternoon radio SFS12 Total budget SFS13 Maximum radio S SFS14 Minimum radio spots Name Final Reduced Objective Allowable Allowable Valuo Cost Coofficient Incroaso Docroaso 1.97 5.00 6.21 0.00 -344.83 1.97 5.00 6.21 0.00 0.00 0.00 0.00 8,000.00 1,800.00 6.21 5000.00 1620.69 5000.00 8500.00 1E+30 2718.75 2400.00 1E+30 2800.00 344.83 Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 12.00 1E+30 5.00 1.70 25.00 1E+30 20.00 1E+30 8000.00 8025.00 1575.00 1.21 263.16 1E+30 0.00 2718.75 0.00 0.00 6.25 2.03 1800.00 0.00 5.00 10.03 5.00 18.79 20.00 1575.00 350.00 1E+30 Solver Sensitivity Report: Win Big Gambling Club Variable Cells Coll Namo SBS5 Number of units TV spots SCS5 Number of units Newspaper ads SDS5 Number of units Prime-time radio spots SES5 Number of units Afternoon radio spots Constraints Cell $F$8 Maximum TV $F$9 Maximum newspaper SFS10 Max prime-time radio SFS11 Max afternoon radio SFS12 Total budget SFS13 Maximum radio S SFS14 Minimum radio spots Name Final Reduced Objective Allowable Allowable Valuo Cost Coofficient Incroaso Docroaso 1.97 5.00 6.21 0.00 -344.83 1.97 5.00 6.21 0.00 0.00 0.00 0.00 8,000.00 1,800.00 6.21 5000.00 1620.69 5000.00 8500.00 1E+30 2718.75 2400.00 1E+30 2800.00 344.83 Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 12.00 1E+30 5.00 1.70 25.00 1E+30 20.00 1E+30 8000.00 8025.00 1575.00 1.21 263.16 1E+30 0.00 2718.75 0.00 0.00 6.25 2.03 1800.00 0.00 5.00 10.03 5.00 18.79 20.00 1575.00 350.00 1E+30

Answer rating: 100% (QA)

Let T N P and A be the decision variables for number of 1minute television spots newspaper ads primetime radio spots and afternoon radio spots per week respectively The objective function is Max audie... View the full answer