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Example 4.1

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27 views12 pages

Example 4.1

Uploaded by

ina20040423
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Example 4.

Purchasing Television ADS


Background Information
• General Flakes Company advertises a low-fat
breakfast cereal in a variety of 30 second
television ads placed in a variety of television
shows.
• The ads in different shows vary by cost and by the
type of viewers they are likely to reach.
– Viewers have been separated into six mutually
exclusive categories by age and gender.
• The rating service can supply information on the
number of viewers.
Background Information --
continued
• It wants to know how many ads to place on each
of several television shows to obtain required
exposures at minimum costs.
• The problem is straightforward to model.
• The variables and constraints are shown here.
The Model
• This model is essentially the opposite of the
product mix model from Chapter 3.
• These two prototype LP models are certainly not
the only types of LP models that exist, but they
are very common.
– maximizing profit is subject to “less than or equal to”
constraints
– minimizing cost is subject to “greater than or equal to”
constraints
Advertising 1.xlsx
Developing the Model

• Follow these steps to develop the model:


1. Input values and range names. Enter the inputs in
the shaded ranges and name the ranges as shown.
2. Ads purchased. Enter any values in the
Number_ads_purchased range.
3. Exposures obtained. Enter the formula
=SUMPRODUCT(B6:I6,Number_ads_purchased) in
cell B23 and copy it down to cell B28.
4. Total cost. In cell B31 enter the formula
=SUMPRODUCT(B14:I14,Number_ads_purchased)
• The solution is not one that would be expected.
Sensitivity Analysis
• Solver’s sensitivity report is enlightening for this
solution.
Dual Objective Extension of the
Model
• General Flakes has two competing objectives
1. Obtain as many exposures as possible
2. Keep the total advertising cost as low as possible
• The original model minimized total cost and
constrained the exposures to be at least as large
as a required level.
• An alternative is to maximize the total number of
excess exposures and put a budget constraint on
total cost.
Advertising 2.xlsx

• To implement the alternative requires only minor modifications to the


original.
– Excess exposures. Enter the formula =B23-D23 in cell F23 and
copy it down. Then sum these cells in B35 with the SUM function.
This cell becomes the new target cell to maximize.
– Budget constraint. Calculate total cost but constrain it to be less
than or equal to cell D32.
– Solver dialog box. Modify the Solver dialog box as shown.
Dual Objective Extension of the
Model -- continued
• For two objective models, one objective must be
optimized and a constraint must be put on the
other.
• The result is a “trade-off curve”.
Using Integer Constraints

• To force the changing cells to have integer values,


you simply add another constraint in the Solver
dialog box.
• Be aware that Solver must do a lot more work to
solve problems with integer constraints.
Using Integer Constraints --
continued
• Consider the following about this integer solution:
– The total cost in the target cell is now worse (larger)
than before.
– The optimal integer solution is not the rounded
noninteger solution.
– When there are integer constraints, Solver uses an
algorithm—called branch and bound—that is
significantly different from the simplex method.
• Integer-constrained models are typically much harder to solve
than models without any integer constraints.
– If the model is linear except for the integer constraints,
that is, it satisfies the proportionality and additivity
assumptions of linear models, you should still check the
Assume Linear Model box under Solver Options.

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