Sample_Homework_Solutions

Sample_Homework_Solutions - Problem 2-13 p 41 Kevin Craig...

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Problem 2-13 p. 41 Kevin Craig, Sample Homework Solutions Mountain Mist Soda Decision Variables TV Spots Magazine Ads Number of Units 10 25 Profit per Unit $15,000.00 $25,000.00 Objective Function Maximize Profit $775,000.00 =SUMPRODUCT($C$22:$D Subject to Constraints Total Budget 5000 2000 100000 <= 100000 TV Budget 5000 0 50000 <= 70000 Magazine Budget 0 2000 50000 <= 50000 Non-negativity 1 10 >= 0 Non-negativity 1 25 >= 0 a) LP Model Formulation has three parts: Decision Variables, Objective Function, and Constraints. Decision Variables: X1 = Number of TV Spots and X2 = Magazine Ads to run during the next quarter. Objective Function: Maximize profit = (300,000 * $0.05) X1 + (500,000 * $0.05) X2 Subject to the Constraints: 5000 X1 + 2000 X2 <= 100,000 (total budget) 5000 X1 <= 70,000 (TV budget limit) 2000 X2 <= 50,000 (magazine budget limit) X1, X2 >= 0 (non-negativity constraint - don't forget this one, it is as important as the others!) c) The optimal solution is to purchase 1 spots and 25 magazine ads, for a total
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This note was uploaded on 04/17/2011 for the course BUSQOM 0050 taught by Professor Glowackia during the Spring '08 term at Pittsburgh.

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Sample_Homework_Solutions - Problem 2-13 p 41 Kevin Craig...

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