Homework 3 Problems
Homework 3 Problems
September 3, 2020
Problem 3.1 Reconsider the Super Grain Corp. case study as presented in Section 3.1. The
advertising firm, Giacomi & Jackowitz, now has suggested a fourth promising advertising
medium - radio commercials - to promote the company's new breakfast cereal, Crunchy Start.
Young children are potentially major consumers of this cereal, but parents of young children (the
major potential purchasers) often are too busy to do much reading (so may miss the company's
advertisements in magazines and Sunday supplements) or even to watch the Saturday morning
programs for children where the company's television commercials are aired. However, these
parents do tend to listen to the radio during the commute to and from work. Therefore, to better
reach these parents, Giacomi & Jackowitz suggests giving consideration to running commercials
for Crunchy Start on nationally syndicated radio programs that appeal to young adults during
typical commuting hours.
Giacomi & Jackowitz estimates that the cost of developing each new radio commercial would be
$50,000 and that the expected number of exposures per commercial would be 900,000. The firm
has determined that 10 spots are available for different radio commercials, and each one would
cost $200,000 for a normal run.
Let:
TV=Number of commercials on TV
M=Number of advertisements in magazines
R=Number of commercials on radio
SS=number of advertisements in Sunday supplements
Subject to:
300TV+150M+200R+100SS ≤ 4,000 ($ thousands)
90TV+30M+50R+40SS ≤ 1,000 ($ thousands)
T ≤5 spots
R ≤10 spots
TV, M, R, SS ≥ 0
Problem 3.16 The Medequip Company produces precision medical diagnostic equipment at
two factories. Three medical centers have placed orders for this month’s production output.
The table below shows what the cost would be for shipping each unit from each factory to
each of these customers. Also shown are the number of units that will be produced at each
factory and the number of units ordered by each customer.
A decision now needs to be made about the shipping plan for how many units to ship from
each factory to each customer
Unit Shipping Cost
From/To Customer 1 (A) Customer 2 (B) Customer 3 (C) Output
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Factory 1 (!) $600 $800 $700 400 units
Factory 2 (2) $400 $900 $600 500 units
Order size 300 units 200 units 400 units
Let:
Xij= the number of medical diagnostic equipment from factories i to customers j, where i= 1,2
and j=A, B, C.
Subject to:
x 1 A +x 1 B+ x 1 C ≤ 400 units
x 2 A +x 2 B+ x 2 C ≤ 500 units
x 1 A +x 2 A=300 units
x 1 B+ x 2 B=200 units
x 1 C+x 2C=400 units
xij ≥ 0,i=1,2, j=A , B , C
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(c) Summarize this formulation in algebraic form
Let:
Subject to:
50x1+100x2+120x4+80x5 ≥380 calories
50x1+100x2+120x4+80x5 ≤ 420 calories
x1+75x2+30x5 ≤ 0.2(50x1+100x2+120x4+80x5)
20x1+50x3+2x5 ≥ 50mg vitamins
x1 ≥ 2 x4
3x1+8x2+x3+2x4+25x5=15mg thickeners
x1, x2, x3, x4, x5 ≥ 0
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