An Introduction to Management Science 13th Edition by David Anderson,Dennis Sweeney ,Thomas Williams ,Jeffrey Camm, Kipp Martin

Exercise 46

The Sea Wharf Restaurant would like to determine the best way to determine the best way to allocate a monthly advertising budget of $1000 between newspaper advertising and radio advertising. Management decided that at least 25% of the budget must be spent on each type of media, and that the amount of money spent on local newspaper advertising. A marketing consultant developed an index that measures audience per dollar of advertising on a scale from 0 to 100, with higher values implying greater audience exposure. If the value of the index for local newspaper advertising is 50 and the index for spot radio advertising is 80, how should the restaurant allocate its advertising budget in order to maximize the value of total audience exposure?
a. Formulate a linear programming model that can be used to determine how the restaurant should allocate its advertising budget in order to maximize the value of total audience exposure.
b. Solve the problem using the graphical solution procedure.