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
Number of Potential Customers Reached
Cost per advertisement($)
Maximum number of times each medium is available per month
Exposure quality rating units
Daytime TV(1 min)
1000
1500 15 65
Evening TV(30 sec)
2000
3000 10 90
Daily Newspapers(1/2 page)
400 25 40
Sunday Newspapers(1/2 page)
2500 4 60
Radio
300
100 30 20

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

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