Reach 127100 customers using the objective function

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reach 127,100 customers (using the objective function from question 4: 4000 T1 + 1500 T2 +2000 R1 + 1200 R2 + 1000 O1 + 800 O1 and the output variables of media usage from problem 1: T1 =10, T2 = 5, R1 = 15, R2 = 18, O1 =20, O2 = 10). In question 4, we were able to reach 139,600 customers. We would recommend that Flamingo Grill use the output media that is suggested from item 4, in order to maximize the number of customers for Flamingo Grill. This will allow the most potential customers for Flamingo Grill, thus probably maximizing their profits.
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Conclusion H&J firm is working with Flamingo Grill to find out how Flamingo Grill can increase the number of customers. Flamingo Grill’s collaboration with Haskell & Johnson (H&J) provides a measured way as to how Flamingo Grill can maximize their $279,000 budget to get the greatest amount of customers. As stated in the problem, each media option available to Flamingo Grill has a certain limit of effectiveness for the number of the media advertisements. After analyzing the objective of Flamingo Grill and the company’s constraints, we would be able to maximize the exposure points with 15 television ads, 33 radio ads, and 30 newspaper ads. With these numbers in terms of advertising, Flamingo Grill will be able to reach 127,100 potential customers. If Flamingo Grill changed its objective function to focus on maximizing the number of customers reached, versus maximizing the exposure points, H&J would recommend Flamingo Grill to have 14 television ads, 28 radio ads, and 55 newspaper ads. If Flamingo Grill were to follow this model and follow the objective of wanting to maximize the number of customers reached, they would reach 139,600 new potential customers. The sensitivity report showed us that the objective function coefficient for T1 (television ads up to the first 10 ads) is 90, with an allowable increase of $ 1E+30 and an allowable decrease of 35. Therefore, as long as the profit contribution stays between this range, the optimal solution for T1, T2, R1, R2, O1, O2 will not change. We could also see from the sensitivity report that the most sensitive objective function coefficient is O2 (newspaper ads after 20 ads). We recommend that if Flamingo Grill wants to maximize their profit, they should follow the model laid out in question 4 (maximizing the customers). This model allowed Flamingo Grill to increase the new customers reached from the original 127,100 to 139,600. 9
Reference Anderson, Sweeney, Williams, Camm, Cochran, Fry & Ohlmann (2015). Quantitative Methodsfor Business (13th ed.). Mason, Ohio: Cengage Learning. 10

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