ITIS 1P97 Lecture Notes - Lecture 7: Media Mix, Data Envelopment Analysis, American Airlines

• School: Brock University
• Department: Information Technology Information Systems
• Course: ITIS 1P97
• Professor: Nigussie Mengesha

Document Summary

The graphical method of linear programming (lp) is useful for understanding how to formulate and solve small lp problems. A large number of real life problems can be modeled using lp. Principles developed here are definitely applicable to larger problems. Linear programming models have been used in the advertising field as a decision aid in selecting an effective media mix. Media selection lp problems can be approached from two perspective. Either maximize audience exposure or minimize advertising cost. Lp can be used to plan the optimal mix of products to manufacture. A company must meet a myriad of constraints, ranging from financial concerns to sales demands to material contracts to union labor demands. Primary goal is to generate the largest profit possible. Setting a low cost production schedule over a period of weeks or months is a difficult and important management problem in most plants.