Your company sends out boxes of grab bag products each month, and you have launched a...
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Your company sends out boxes of "grab bag" products each month, and you have launched a new product line. It could be makeup, or clothes, or "manly things," whatever you want. You are planning to send out offers to Current, Potential, and Previous customers. The response rate for each group has been estimated. You are going to mail offers to each group, giving them a code for a sample product box. The goal is to maximize the number of purchases, subject to the six constraints listed below Constraints 1 2 3 C = # of Current customers to send materials to N = # of New (potential) customers to send materials to P = # of Previous customers to contact 15% Current customers request sample 10% New customers request sample 12% Previous customers request sample 12% Current customers will purchase after sample 20% New customers will purchase after sample 15% Previous customers will purchase after sample $2 cost to send offer to Current customers $3 cost to send offer to New customers $3 cost to send offer to Previous customers 30,000 minimum # samples to send to Current customers 10,000 minimum #samples to send to New customers 20,000 minimum #samples to send to Previous customers 4 New customers should be no more than half of the total samples sent 5 Number of samples sent to Current customers should be less than or equal to number of samples sent to Previous customers 6 $ 2,000,000 maximum budget Your company sends out boxes of "grab bag" products each month, and you have launched a new product line. It could be makeup, or clothes, or "manly things," whatever you want. You are planning to send out offers to Current, Potential, and Previous customers. The response rate for each group has been estimated. You are going to mail offers to each group, giving them a code for a sample product box. The goal is to maximize the number of purchases, subject to the six constraints listed below Constraints 1 2 3 C = # of Current customers to send materials to N = # of New (potential) customers to send materials to P = # of Previous customers to contact 15% Current customers request sample 10% New customers request sample 12% Previous customers request sample 12% Current customers will purchase after sample 20% New customers will purchase after sample 15% Previous customers will purchase after sample $2 cost to send offer to Current customers $3 cost to send offer to New customers $3 cost to send offer to Previous customers 30,000 minimum # samples to send to Current customers 10,000 minimum #samples to send to New customers 20,000 minimum #samples to send to Previous customers 4 New customers should be no more than half of the total samples sent 5 Number of samples sent to Current customers should be less than or equal to number of samples sent to Previous customers 6 $ 2,000,000 maximum budget
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Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
Posted Date:
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