• September 21st, 2018

American Auto Linear programming model & solution

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1. American Auto is evaluating their marketing plan for the sedans, SUVs, and trucks they produce. A TV ad featuring this SUV has been developed. The company estimates each showing of this commercial will cost $500,000 and increase sales of SUVs by 3% but reduces sales of trucks by 1% and have no effect of the sales of sedans. The company also has a print ad campaign developed that it can run in various nationally distributed magazines at a cost of $750,000 per title. It is estimated that each magazine title the ad runs in will increase the sales of sedans, SUVs, and trucks by2 %, 1%, and 4%, respectively. The company desires to increase sales of sedans, SUVs, and trucks by at least 3%, 14%, and 4$, respectively, in the least costly manner. A. Formulate mathematical linear programming problem (1 point) B. Implement the model in a separate Excel tab and solve it (2 points) C. What is the optimal solution (1 point)

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