A department store has a budget up to $30,000 per week for advertising. There are three promotional media available: television spot, daily newspaper ad, and radio spot.
Each television spot costs $1,300; each newspaper ad costs $610; and each radio spot costs $290. The expected exposure is 24,000 viewers for each television spot; 6,500 readers for each newspaper ad; and 5,100 listeners for each radio spot.
There are 16 television spots, 10 newspaper ads, and 35 radio spots available each week.
The store has decided that at least 5 television spots, at least 4 newspaper ads, and at least 7 radio spots should be ordered per week.
How many spots and ads should each of the three media be used to obtain maximum exposure while staying within the budget?
The decision variables are:
T = number of TV spots aired per week
N = number of newspaper ads posted per week
R = number of radio spots aired per week
Use Solver to find the optimal solution and explain the optimal solution.