Question: 19. Banner Ad Allocation. Suppose you work for CNN.com and an plan how many visitors to banner ads for next Friday. You contract with companies

 19. Banner Ad Allocation. Suppose you work for CNN.com and an

19. Banner Ad Allocation. Suppose you work for CNN.com and an plan how many visitors to banner ads for next Friday. You contract with companies to plan how exposed to one of the CNN web site are shown ads for their products. A visitor being exposed to many of the impressions lead to a click through to the company's web site. Factoring in the click-through rates and the revenue per click-through, you have calculated the following expected revenue per impression for three sections of the web site (Business, Science, and Sports) for three of your client companies (Nike, Oracle, and P\&G) Maximum Total Imnrescione hy Section Your contracts specify lower and upper bounds on how many total impressions you will allocate to each client company (across both sections). Each company must be allocated at least 1,000,000 impressions, but no more than 2,000,000. LO 1 a. Formulate a linear programming model to maximize revenue from these banner ads. b. Solve the model created in part a. How many impressions should be allocated to each section for each company? c. What is the optimal revenue

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!