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  1. Question • Relax and Enjoy Lake Development Corporation is developing a lakeside community at a privately owned lake.Their primary market includes all the middle and upper income families. Relax and Enjoy Lake Development Corporation has employed the advertising firm of Boone, Phillips and Jackson (BP&J) to design the promotional campaign. • BP&J have recommended that the first months advertising be restricted to only 5 media.

  2. BP&J have collected data on - Number of Potential Customers Reached - Cost per advertisement - Maximum number of times each medium is available - Exposure quality rating for each 5 media

  3. Advertising Media Alternatives for Relax and Enjoy

  4. Relax and Enjoy provided BP&J with the advertising budget of $30,000 for the first month’s campaign. In addition there were some restrictions. - At least 10 TV commercials must be used - At least 50,000 potential customers must be reached - Not more than $18,000 may be spent on TV Advertisements.

  5. Decision Variable • The decision to be made is how many times to use each medium. The decision variables are: DTV – number of times daytime TV is used ETV - number of times daytime TV is used DN - number of times daytime TV is used SN - number of times daytime TV is used R - number of times daytime TV is used

  6. Objective Function • Objective –To maximize the total exposure quality units for the overall media selection plan. • Objective Function Max Z = 65DTV+90ETV+40DN+60SN+20R

  7. Constraints • Availability of Media DTV<=15 ETV<=10 DN<=25 SN<= 4 R<=30

  8. Budget Advertising budget is not more than $30,000 1500DTV+3000ETV+400DN+1000SN+100R<=30000 • Television Restrictions DTV+ ETV >=10 1500DTV + 3000ETV <=18,000

  9. Customers Reached 1000DTV+2000ETV+1500DN+2500SN+300R>=50000 • Non-Negativity DTV,ETV,DN,SN,R>=0

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