Scribd Logo
Upload

Welcome to Scribd!

  • 340 views

    Assignment 4 15

    Uploaded by

    Senthil Rokesh
    This document contains three questions regarding decision making models for advertising and business operations. Question 1 involves determining an optimal TV advertising schedule for an auto company across football and soap opera ads within a $600,000 budget. Question 2 asks to recommend the number of canoes for a rental business to lease based on daily demand. Question 3 involves determining optimal ticket pricing and capacity limits for a musical, considering student discounts, no-shows, and costs of overbooking.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Assignment 4 15

    Uploaded by

    Senthil Rokesh
    340 views2 pages
    This document contains three questions regarding decision making models for advertising and business operations. Question 1 involves determining an optimal TV advertising schedule for an auto company across football and soap opera ads within a $600,000 budget. Question 2 asks to recommend the number of canoes for a rental business to lease based on daily demand. Question 3 involves determining optimal ticket pricing and capacity limits for a musical, considering student discounts, no-shows, and costs of overbooking.

    Original Description:

    yfujnfuyc

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains three questions regarding decision making models for advertising and business operations. Question 1 involves determining an optimal TV advertising schedule for an auto company across football and soap opera ads within a $600,000 budget. Question 2 asks to recommend the number of canoes for a rental business to lease based on daily demand. Question 3 involves determining optimal ticket pricing and capacity limits for a musical, considering student discounts, no-shows, and costs of overbooking.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    340 views2 pages

    Assignment 4 15

    Uploaded by

    Senthil Rokesh
    This document contains three questions regarding decision making models for advertising and business operations. Question 1 involves determining an optimal TV advertising schedule for an auto company across football and soap opera ads within a $600,000 budget. Question 2 asks to recommend the number of canoes for a rental business to lease based on daily demand. Question 3 involves determining optimal ticket pricing and capacity limits for a musical, considering student discounts, no-shows, and costs of overbooking.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Faculty of Engineering AND Computer Science

    Concordia University

    Decision Models for Service Sector INDU 466/6151 WINTER 2015


    Assignment #4, Due April 13th
    Question 1
    The Leon Burnit Advertising Agency is trying to determine a TV advertising schedule for Priceler
    Auto Company. Priceler has three goals:
    Goal 1: Its ads should be seen by at least 40 million high income men (HIM)
    Goal 2: Its ads should be seen by at least 60 million low income people (LIP)
    Goal 3: Its ads should be seen by at least 35 million high income women (HIW)
    Goal Preference Weight
    1

    0.1

    0.3

    0.6

    Leon Burnit can purchase two types of ads; those shown during football games and those shown
    during soap operas. At most $600,000 can be spent on ads. The advertising costs and potential
    audiences of a one-minute ad of each type are shown in following table. Leon Burnit must
    determine how many football ads and soap opera ads to purchase for Priceler.

    Football Ad
    Soap Opera Adb

    Millions of Viewers
    LIP
    HIW
    10
    5
    5
    4

    HIM
    7
    3

    a)Formulate a goal programming model and solve it using Excel Solver .


    b) What is the solution if the importance of each goal is modified as follows?
    Goal Preference Weight
    1

    0.6

    0.3

    0.1

    Cost
    100,000
    60,000

    Question 2
    Crazy Joe operates a canoe rental service on the Guadalupe River. He currently leases 15 canoes
    from a dealer in a nearby city at a cost of $10 per day. On weekends, when the water is high, he
    picks up the canoes and drives to a launching point on the river, where he rents canoes to whitewater enthusiasts for $30 per day. Lately, canoeists have complained about the unavailability of
    canoes, so Crazy Joe has recorded the demand for canoes and found that the daily demand follows
    normal distribution with a mean of 18 canoes and a standard deviation of 3.
    Recommend an appropriate number of canoes to lease. On average, how many canoeists wont be
    able to rent one in the cases where he leases 15 canoes vs the recommended canoes?
    Question 3
    Ron, the director at the Annenberg theater, is planning his pricing strategy for a musical to be held
    in a 100 seat theater. He sets the full price at $80 and estimates demand at this price to be normally
    distributed with mean 60 and standard deviation 40. Ron also decides to offer student only tickets
    discounted 50% off the full price. Demand for the discounted student only tickets is usually
    abundant and occurs well before full ticket sales.
    a) Ron knows on average 8 seats remain empty due to no-shows with a standard deviation of
    2 following a normal distribution. Ron also estimates that it is 10 times more costly for him
    to have one more attendee than seats relative to having one empty seat in the theater. What
    is the maximum number of seats to sell in excess capacity?
    b) Suppose Ron sets a 50 seat booking limit for the student only tickets. What is the number
    of full price tickets that Ron expects to sell ?

    You might also like