I n this example, we revisit the problem faced by the General Flakes Company in Example 4.1 of Chapter 4. The company must decide how many ads to place on each of several television shows to meet...

I n this example, we revisit the problem faced by the General Flakes Company in Example 4.1 of Chapter 4. The company must decide how many ads to place on each of several television shows to meet exposure constraints for each of six groups of customers. (Refer to Figure 7.23 and the file Advertising Selection.xlsx for the specific inputs.) The difference now is that each combination of television show and customer group has its own advertising response function of the form in equation (7.4). That is, there are constants a and b of the response function for each such combination. (These constants appear in rows 5 to 10 and 14 to 19 of the file.) The company wants to find the selection of ads that minimizes its total cost of meeting all exposure requirements

Objective To use a nonlinear model to find a minimum-cost way of meeting all exposure requirements.