SYED FAYAS THANVEER S

1913104

ASSIGNMENT - 1
MEDIA SELECTION
SMM Company recently developed a new instant salad machine and has spent
$282000 on advertisement. The money is to be spent on a TV advertising blitz
during one weekend. The options available are daytime, evening news, Sunday
game time advertising.
Estimated Audience.
AD Type Reached with each AD Cost per AD
Daytime 3000 $5000
Evening news 4000 $7000
Sunday game 75000 $100000

SMM wants to take out at least one ad of each type. Further, there are only two
game-time ad spots available. There are ten daytime spots and six evening news
spots available daily. SMM wants to have at least 5 ads per day, but spend no
more than $50,000 on Friday and no more than $75,000 on Saturday.
Design an Optimal Policy.

ANSWER
Budget available- $282000.
Objective : Maximize the number of audience reached by the suitable number of
ads at the correct time.
Decision Variables:
 DFR- Number of daytime Ads on Friday.
 DSA- Number of daytime Ads on Saturday.
 DSU- Number of daytime Ads on Sunday.
 EFR- Number of Evening time Ads on Friday.
 ESA- number of evening ads on Saturday.
 ESU- number of evening ads on Sunday.
 GSU- number of game-time ads on Sunday.
 SYED FAYAS THANVEER S
1913104

Objective Function: 3000DFR+ 3000DSA+ 3000DSU+ 4000EFR+ 4000ESA+

4000ESU+ 75000GSU.
Constraints:
 DFR+ DSA+ DSU≥ 1. (At least one Ad on each type.)
 EFR+ ESA+ ESU≥ 1. (At least one Ad on each type.)
 GSU≥ 1. (At least one Ad on each type.)
 DFR≤ 10. (Ten day spots available).
 DSA≤ 10. (Ten day spots available).
 DSU≤ 10. (Ten day spots available).
 EFR≤ 6. (Six Evening news spots available).
 ESA≤ 6. (Six Evening news spots available).
 ESU≤ 6. (Six Evening news spots available).
 GSU≤ 2. (Only two Sunday game ad spots available).
 DFR+ EFR≥ 5. (At least 5 ads per day).
 DSA+ ESA≥ 5. (At least 5 ads per day).
 DSU+ ESU+ GSU≥ 5. (At least 5 ads per day).
 5000DFR+ 7000EFR≤ 50000. (No more than $50000 on Friday).
 5000DSA+ 7000ESA≤ 75000. (No more than$75000 on Saturday).
 5000DFR+ 5000DSA+ 5000DSU+ 7000EFR + 7000ESA+ 7000ESU+
100000GSU7 ≤ 282000. (should not exceed $282000 on total).

Non-negativity: DFR, DSA, DSU, EFR, ESA, ESU, GSU≥ 0.

Objective Function Value = 199000

Variable Value
DFR 7.00
DSA 5.00
DSU 3.00
EFR 1.00
ESA 0.00
ESU 0.00
GSU 2.00
 SYED FAYAS THANVEER S
1913104

TABLE 1: VARIABLE CELLS

NAME FINAL REDUCED OBJECTIVE ALL ALL
VALUE COST COEFFICIENT INC DEC
DFR 7 0 3000 0 0
DSA 5 0 3000 0 0
DSU 3 0 3000 0 0
EFR 1 0 4000 200 0
ESA 0 0 4000 0 1E+30
ESU 0 0 4000 0 1E+30
GSU 2 0 75000 1E+30 15000

TABLE 2:
NAME VALUE STATUS SLACK
No of daytime ads on Friday 7 Not binding 3
utilized
No od daytime Saturday ads 5 Not binding 5
utilized
No of daytime Sunday ads 3 Not binding 7
utilized
No of eve time ads on Friday 1 Not binding 5
utilized
No of eve time ads on 0 Not binding 6
Saturday utilized
No of eve time ads on Sun 0 Not binding 6
utilized
only 2 game time Sunday 2 Binding 0
available (utilized)
No of ads on Friday utilized 8 Not binding 3
No of ads on Saturday 5 Binding 0
utilized
No of ads on Sunday utilized 5 Binding 0
spending limit on Friday is 42000 Not binding 8000
50000 (utilized)
spending limit on Saturday is 25000 Not binding 50000
75000 (utilized)
 SYED FAYAS THANVEER S
1913104

Total budget is282000 282000 Binding 0

(utilized)
Day time ads utilized 15 Not binding 14
Evening ads utilized 1 Binding 0
Sunday game time ads 2 Not binding 1
utilized

INFERENCE:
a. The optimal solution is represented by Value represented in Table 1.
The optimal objective value can be founded can be founded by
plotting the final value in the objective function i.e., 3000DFR+
3000DSA+ 3000DSU+ 4000EFR+ 4000ESA+ 4000ESU+
75000GSU. We will get 199000.
b. For DFR, DSA and DSU there is no allowable increase or decrease.
Because it will affect the optimality of the solution
c. Whereas in EFR, the allowable increase can be 200 i.e. (4000+200).
But it should not be decreased (less than 4000)
d. Any change in objective coefficient that lies within the allowable
ranges, will not affect the optimality of the solution. The allowable
increase and decrease value specify how much the objective
coefficient change before the final solution can will change.
e. Increase or decrease in the constraints value will determine an
increase or decrease in the objective function.
f. Reduced cost is 0 for all the variables so 1unit change in value won’t
have any impact.
g. Shadow price refers to the change in the optimal value per unit
increase in right side of the constraint. If the allowable increase
changes per unit the audience reach will change based on that unit.
If the allowable decrease changes per unit the audience will change
per unit. Shadow price at Non-binding constraints will be Zero.
h. Not binding means resources which are not utilized properly.
Binding means resources which are utilized properly. So the Sunday,
Saturday, Evening ads, only 2 game time Sunday and the total
budget are properly utilized.