Discuss the below problem:
Q: A Department store chain has hired an advertising firm to determine the types and amount of advertising it should invest for its stores. The three types of advertising available are television and radio commercials and newspaper ads. The retail chain desires to know the number of each type of advertisement it should purchase in order to maximize exposure. It is estimated that each add or commercial will reach the following potential audience and cost the following amount: The company must consider the following resource constraints: The budget limit for advertising is $100,000. The TV station has time available for 4 commercials. The radio station has time available for 10 commercials. The newspaper has space available for 7 ads. The advertising agency has time and staff available for producing no more than a total of 15 commercial and/or ads.
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Exposure
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Cost
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(people/ad)
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($)
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TV ad
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20,000
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15,000
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|
Radio ad
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12,000
|
6,000
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|
Newspaper ad
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9,000
|
4,000
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Answer the Question during the following
1- Decision Variables
2- Objective Function
3- Constrains