Case Study 4.docx - Case Study#4 u2013 Module B Linear...

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Case Study #4 – Module B Linear Programming Applications in Operations ManagementOPSY 5313-W01: Operations Management
Executive SummaryThe budget being a binding constraint have shadow price of 5.5. With an increase of $10,000 budget, thecorresponding Increase in exposure will be 10 x 5.5 = 55. The total exposure will now be 2160+55 = 2215.I recommend that The Flamingo Grill uses 15 television ads, 33 radio ads, and 30 newspaper ads. Introduction/AssumptionsLet: T1= number of televisions advertisements with rating of 90 and 4000 new customersT2= number of television advertisements with rating of 40 and 1500 new customersR1= number of radio advertisements with rating of 25 and 2000 new customersR2= number of radio advertisements with rating of 15 and 1200 new customersN1= number of newspaper advertisements with rating of 10 and 1000 customersN2= number of newspaper advertisements with rating of 5 and 800 new customersThe Management Scientific (using linear programming model and solution):MAX = 90T1 + 55T2 + 25R1 + 20R2 +10N1 +5N2Subject to :1. 1T1 < 102. 1R1 < 15

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