Juki Mara is Dallas based company specializing in climate-controlled pet houses. According to the company’s VP of Operations, their market segments basically compromise of high-end customers who are either dog or cat owners and who want to pamper their pets. To reach these groups of dog and cat owners, the VP of Operations is considering placing one-minute commercials on the following national
TV shows: “Houston Dog and Cat Show” and “Texan’s Best Friend”.
A one-minute commercial on “Houston Dog and Cat Show” costs $200,000, and a one-minute commercial on “Texan’s Best Friend” costs $50,000. The VP would like the commercials to be seen by at least 60 million high-income dog and at least 36 million high-income cat owners. Marketing studies show the following:
Each one-minute commercial on “Houston Dog and Cat Show” is seen by six million high income dog and two million high-income cat owners.
Each one-minute commercial on “Texan’s Best Friend” is seen by three million high-income dog and three million high-income cat owners.
1--Formulate LP problem (constraints and objective functions) for Juki Mara that minimizes objective function.
2--Solve the LP problem that minimizes the marketing expenditure.