Question: FOR THIS PROBLEM: MAKE AND SOLVE A LINEAR PROGRAMMING MODEL IN EXCEL, THEN USE SENSITIVITY REPORT AND SOLVER. Island Publishing Company publishes two types of
FOR THIS PROBLEM: MAKE AND SOLVE A LINEAR PROGRAMMING MODEL IN EXCEL, THEN USE SENSITIVITY REPORT AND SOLVER. Island Publishing Company publishes two types of magazines on a monthly basis: a restaurant and entertainment guide and a real estate guide. The company distributes the magazines free to businesses, hotels, and stores on Hilton Head Island in South Carolina. The companys profits come exclusively from the paid advertising in the magazines. Each of the restaurant and entertainment guides distributed generates $ per magazine in advertising revenue, whereas the real estate guide generates $ per magazine. The real estate magazine is a more sophisticated publication that includes color photos, and accordingly it costs $ per magazine to print, compared with only $ for the restaurant and entertainment guide. The publishing company has a printing budget of $ per month. There is enough rack space to distribute at most magazines each month. To entice businesses to place advertisements, Island Publishing promises to distribute at least copies of each magazine. The company wants to determine the number of copies of each magazine it should print each month to maximize advertising revenue.
a Formulate and solve the linear programming model for this problem.
b What would be the effect on the optimal solution if the local real estate agents insisted that copies of the real estate guide be distributed instead of the current copies, or they would withdraw their advertising?
c How much would it be worth to Island Publishing Company to obtain enough additional rack space to distribute copies instead of the current copies? copies?
d How much would it be worth to Island Publishing to reduce the requirement to distribute the entertainment guide from to copies?
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