Essay Decision Analysis

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DECISION ANALYSIS ASSIGNMENT 1

Case Problem 1: Planning Advertising Campaign

EXCEL sensitivity report for the Flamingo Grill case problem:

Managerial Report
Question 1:
Data given for Flamingo Grill case problem:
Total budget = $279000 Advertising media | Exposure rating per ad | New customers per ad | Cost per ad ($) | HJ consultant limit application to | Television | 90 | 4000 | 10000 | 10 | Radio | 25 | 2000 | 3000 | 15 | Newspaper | 10 | 1000 | 1000 | 20 |

After consideration of limit for each advertising media: Advertising media | Exposure rating per ad | New customers per ad | Cost per ad ($) | Television | 55 | 1500 | 10000 | Radio | 20 | 1200 | 3000 | Newspaper | 5 | 800 | 1000 |

Model:
Decision
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dvertising campaign was to maximize the number of potential new customers reached:
EXCEL sensitivity report for the Flamingo Grill case problem:

Managerial Report
Data given for Flamingo Grill case problem:
Total budget = $279000 Advertising media | Exposure rating per ad | New customers per ad | Cost per ad ($) | HJ consultant limit application to | Television | 90 | 4000 | 10000 | 10 | Radio | 25 | 2000 | 3000 | 15 | Newspaper | 10 | 1000 | 1000 | 20 |

After consideration of limit for each advertising media: Advertising media | Exposure rating per ad | New customers per ad | Cost per ad ($) | Television | 55 | 1500 | 10000 | Radio | 20 | 1200 | 3000 | Newspaper | 5 | 800 | 1000 |

Model:
Decision variables: Advertising media | Num of campaigns for max effectiveness | Num of campaigns for reduced effectiveness | TOTAL | Television | 10 | 4 | 14 | Radio | 15 | 13 | 28 | Newspaper | 20 | 35 | 55 | TOTAL | 45 | 52 | |

TOTAL NEW CUSTOMERS REACHED = 139600
TOTAL EXPOSURE = 2130
Constraints:
* Must reach at least 100000 new customers
139600 ≥ 100000 * Total campaign slots for maximum effectiveness smaller or same with limit
Television: 10 ≤ 10
Radio: 15 ≤ 15
Newspaper: 20 ≤ 20 * At least twice as many radio ads as television ads
28 ≥ 28 * Use not more than 20 television ads
Television: 14 ≤ 20 * Television budget should be at least $140000
$140000 ≥ $140000 * Radio advertising budget is restricted to a

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