Question: use this excel sheet to solve A and C , show how you solve in excel. i just need answer for a and C only

use this excel sheet to solve A and C , show how you solve in excel. i just need answer for a and C only use this excel sheet to solve A and C , show how
use this excel sheet to solve A and C , show how
use this excel sheet to solve A and C , show how
use this excel sheet to solve A and C , show how
AutoSave Case Study (Ch 4) LP Home Insert Draw Page Layout Formulas Data > Tell me A % Conditional Formatting Format as Table Cell Styles Clipboard Font Alignment Number Cells G8 x V fe A B D E F G H T1 T2 R1 R2 N1 N2 TI T2 R1 R2 2 New CustAd 3 Cost/Ad 4 Availability 5 Esp/Ad B 7 DECISION VAR B Ads Placed 9 10 Max Exposure 1 12 Constraints 13 14 NI N2 LHS RHS 15 16 17 18 19 20 21 22 23 24 25 26 27 28 30 31 32 33 a. page for see page 204 of textbook) to answer the following questions: Formulate a linear programming model identify and define decision variables, objective function and constraints) that can be used to determine the advertising budget allocation for the Flamingo Grill in order to maximize the total exposure rating. (20 points) b. Use Solver in Microsoft Excel to solve the model that you developed in part (a). Give the values of each decision variable and the objective function. Also indicate the total number of new customers reached. You MUST attach a copy of the solution report. (10 points) c. How would the total exposure change if an additional $10,000 were added to the advertising budget? Explain. (5 points) d. Comment on the ranges for the objective function coefficients. What do the ranges indicate about how sensitive the recommended solution is to HI's exposure rating coefficients? Explain. (5 points) e. After reviewing HJ's recommendation, the Flamingo's management team asked how the optimal solution would change if the objective of the advertising campaign was to maximize the number of potential new customers reached. Use Solver in Microsoft Excel to solve this new model that you developed in parte). Give the values of each decision variable and the objective function. Also indicate the total exposure rating. You MUST attach a copy of the solution report. (5 points) Compare the optimal solutions from part (b) and part (e). Which objective function is a better indicator of please comment (5 points) Case Problem 1 PLANNING AN ADVERTISING CAMPAIGN The Flamingo Grill is an upscale restaurant located in St. Petersburg, Florida. To help plan an advertising campaign for the coming season, Flamingo's management team hired the advertising firm of Haskell & Johnson (HJ). The management team requested Hy's recom- mendation concerning how the advertising budget should be distributed across television, radio, and newspaper advertisements. The budget has been set at $279,000. In a meeting with Flamingo's management toum, HJ consultants provided the follow- ing information about the industry exposure effectiveness rating per ad, their estimate of the number of potential new customers reached per ad, and the cost for each ad. New Customers Cost per Ad 4000 per Ad Exposure Rating per Ad 90 25 10 Advertising Media Television Radio Newspaper 2000 1000 $10,000 S 3,000 S 1,000 The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest poten- tial for reaching new customers. At this point, the HJ consultants pointed out that the data concerning exposure and reach were only applicable to the first few ads in cach medium. For television, HJ stated that the exposure rating of 90 and the 4000 new customers reached per ad were reliable for the first 10 television ads. After 10 ads, the benefit is expected to decline. For planning purposes, HJ recommended reducing the exposure rating to 55 and the estimate of the potential new customers reached to 1500 for any television ads beyond 10. For radio ads, the preceding data are reliable up to a maximum of 15 ads. Beyond 15 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1200 per ad. Similarly, for newspaper ads, the preceding data are reliable up to a maximum of 20; the exposure rating declines to 5 and the potential number of new customers reached declines to 800 for additional ads. Flamingo's management team accepted maximizing the total exposure rating across all media, as the objective of the advertising campaign. Because of management's concern with attracting sew customers, management stated that the advertising campaign must reach at least 100,000 new customers. To balance the advertising campaign and make use of all advertising media, Flamingo's management team also adopted the following guidelines. Use at least twice as many radio advertisements as television advertisements. Use no more than 20 television advertisements The television budget should be at least $140,000 The radio advertising budget is restricted to a maximum of $99,000 The newspaper budget is to be at least $30,000 HI agreed to work with these guidelines and provide a recommendation as to how the $279,000 advertising budget should be allocated among television, radio, and newspaper . . Case Problem 1 PLANNING AN ADVERTISING CAMPAIGN The Flamingo Grill is an upscale restaurant located in St. Petersburg, Florida. To help plan an advertising campaign for the coming season, Flamingo's management team hired the advertising firm of Haskell & Johnson (HJ). The management team requested HI's recom- mendation concoming how the advertising budget should be distributed across television, radio, and newspaper advertisements. The budget has been set at $279,000 In a meeting with Flamingo's management team, HJ consultants provided the follow- ing information about the industry exposure effectiveness rating per ad, their estimate of the number of potential new customers reachod per ad, and the cost for each ad. Advertising Media Television Radio Newspaper Exposure Rating per Ad 90 25 10 New Customers per Ad 4000 2000 1000 Cost per Ad S10,000 $ 3,000 $ 1,000 The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest poten- tial for reaching new customers. At this point, the HJ consultants pointed out that the data conceming exposure and reach were only applicable to the first few ads in cach medium. For television, HJ stated that the exposure rating of 90 and the 4000 new customers reached per ad were reliable for the first 10 television ads. After 10 ads, the benefit is expected to decline. For planning purposes, HJ recommended reducing the exposure rating to 55 and the estimate of the potential new customers reached to 1500 for any television ads beyond 10. For radio ads, the preceding data are reliable up to a maximum of 15 ads. Beyond 15 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1200 per ad. Similarly, for newspaper ads, the preceding data are reliable up to a maximum of 20, the exposure rating declines to 5 and the potential number of new customers reached declines to 800 for additional ads. Flamingo's management team accepted maximizing the total exposure rating, across all media, as the objective of the advertising campaign. Because of management's concem with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. To balance the advertising campaign and make use of all advertising media, Flamingo's management team also adopted the following guidelines. Use at least twice as many radio advertisements as television advertisements. Use no more than 20 television advertisements. The television budget should be at least $140,000 The radio advertising budget is restricted to a maximum of $99,000 The newspaper budget is to be at least $30,000. HJ agreed to work with these guidelines and provide a recommendation as to how the $279,000 advertising budget should be allocated among television, radio, and newspaper advertising 1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To solve parts A and C lets break down the task using the given data Well focus on the formulation o... View full answer

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!