Final project Quantitative Analysis
Final Project Instructions:

There are two parts for your final project.

Final Project Part A and Part B

The Final Project should be a minimum of four pages including a cover page with all necessary info (you MUST specify clearly the Case Problem # and titles so your instructor can identify them for grading) for the final project with a reference page. The main body should clearly address all questions asked in the managerial report of the two case# 1 problems you chose.

Your paper should reflect scholarly writing and current APA standards. Please include citations to support your ideas.

Part A

Case problem 1: Linear Programming Applications in Marketing, Finance, and Operations Management

The Flamingo Grill is an upscale restaurant located in St. Petersburg, Florida. To help plan an advertising campaign for the coming season, Flamingo’s management team hired the advertising firm of Haskell & Johnson (HJ). The management team requested HJ’s recom-mendation concerning how the advertising budget should be distributed across television, radio, and online advertisements. The budget has been set at $279,000.In a meeting with Flamingo’s management team, HJ consultants provided the following information about the industry exposure effectiveness rating per ad, their estimate of the number of potential new customers reached per ad, and the cost for each ad:ExposureNew CustomersCost Advertising Mediarating per Adper Adper AdTelevision904,000$10,000Radio252,000$3,000Online101,000$1,000The exposure rating is viewed as a measure of the value of the ad to both existing customers and potential new customers. It is a function of such things as image, message recall, visual and audio appeal, and so on. As expected, the more expensive television advertisement has the highest exposure effectiveness rating along with the greatest potential for reaching new customers.At this point, the HJ consultants pointed out that the data concerning exposure and reach were only applicable to the first few ads in each medium. For television, HJ stated that the exposure rating of 90 and the 4000 new customers reached per ad were reliable for the first 10 television ads. After 10 ads, the benefit is expected to decline. For plan-ning purposes, HJ recommended reducing the exposure rating to 55 and the estimate of the potential new customers reached to 1500 for any television ads beyond 10. For radio ads, the preceding data are reliable up to a maximum of 15 ads. Beyond 15 ads, the exposure rating declines to 20 and the number of new customers reached declines to 1200 per ad. Similarly, for online ads, the preceding data are reliable up to a maximum of 20; the exposure rating declines to 5 and the potential number of new customers reached declines to 800 for additional ads. Flamingo’s management team accepted maximizing the total exposure rating, across all media, as the objective of the advertising campaign. Because of management’s concern with attracting new customers, management stated that the advertising campaign must reach at least 100,000 new customers. To balance the advertising campaign and make use of all advertising media, Flamingo’s management team also adopted the following guidelines:??Use at least twice as many radio advertisements as television advertisements.??Use no more than 20 television advertisements.??The television budget should be at least $140,000.??The radio advertising budget is restricted to a maximum of $99,000.??The online budget is to be at least $30,000.HJ agreed to work with these guidelines and provide a recommendation as to how the $279,000 advertising budget should be allocated among television, radio, and online advertising. Managerial report Develop a model that can be used to determine the advertising budget allocation for the Fla-mingo Grill. Include a discussion of the following in your report:

1.A schedule showing the recommended number of television, radio, and online adver-tisements and the budget allocation for each medium. Show the total exposure and indicate the total number of potential new customers reached.

2.How would the total exposure change if an additional $10,000 were added to the advertising budget?

3.A discussion of the ranges for the objective function coefficients. What do the ranges indicate about how sensitive the recommended solution is to HJ’s exposure rating coefficients?

4.After reviewing HJ’s recommendation, the Flamingo’s management team asked how the recommendation would change if the objective of the advertising campaign was to maximize the number of potential new customers reached. Develop the media schedule under this objective.

5.Compare the recommendations from parts 1 and 4. What is your recommendation for the Flamingo Grill’s advertising campaign?

Part B

Chapter 13 Case Problem 1 Property Purchase Strategy

Glenn Foreman, president of Oceanview Development Corporation, is considering sub-mitting a bid to purchase property that will be sold by sealed bid at a county tax foreclosure. Glenn’s initial judgment is to submit a bid of $5 million. Based on his experience, Glenn estimates that a bid of $5 million will have a 0.2 probability of being the highest bid and securing the property for Oceanview. The current date is June 1. Sealed bids for the property must be submitted by August 15. The winning bid will be announced on September 1. If Oceanview submits the highest bid and obtains the property, the firm plans to build and sell a complex of luxury condominiums. However, a complicating factor is that the property is currently zoned for single-family residences only. Glenn believes that a referendum could be placed on the voting ballot in time for the November election. Passage of the referendum would change the zoning of the property and permit construction of the condominiums. The sealed-bid procedure requires the bid to be submitted with a certified check for 10% of the amount bid. If the bid is rejected, the deposit is refunded. If the bid is accepted, the deposit is the down payment for the property. However, if the bid is accepted and the bidder does not follow through with the purchase and meet the remainder of the financial obligation within six months, the deposit will be forfeited. In this case, the county will offer the property to the next highest bidder. To determine whether Oceanview should submit the $5 million bid, Glenn conducted some preliminary analysis. This preliminary work provided an assessment of 0.3 for the prob-ability that the referendum for a zoning change will be approved and resulted in the following estimates of the costs and revenues that will be incurred if the condominiums are built Cost and revenue Estimates Revenue from condominium sales$15,000,000CostProperty$5,000,000Construction expenses$8,000,000If Oceanview obtains the property and the zoning change is rejected in November, Glenn believes that the best option would be for the firm not to complete the purchase of the property. In this case, Oceanview would forfeit the 10% deposit that accompanied the bid. Because the likelihood that the zoning referendum will be approved is such an important factor in the decision process, Glenn suggested that the firm hire a market research service to conduct a survey of voters. The survey would provide a better estimate of the likelihood that the referendum for a zoning change would be approved. The market research firm that Oceanview Development has worked with in the past has agreed to do the study for $15,000. The results of the study will be available on August 1, so that Oceanview will have this information before the August 15 bid deadline. The results of the survey will be either a prediction that the zoning change will be approved or a prediction that the zoning change will be rejected. After considering the record of the market research service in previous studies conducted for Oceanview, Glenn developed the following probability estimates concerning the accuracy of the market research information :P(AZs1) 5 0.9P(NZs1) 5 0.1P(AZs2) 5 0.2P(NZs2) 5 0.8whereA5 prediction of zoning change approval N5 prediction that zoning change will not be approveds15 the zoning change is approved by the voterss25 the zoning change is rejected by the voters managerial report Perform an analysis of the problem facing the Oceanview Development Corporation, and prepare a report that summarizes your findings and recommendations. Include the following items in your report:

1.A decision tree that shows the logical sequence of the decision problem

2. A recommendation regarding what Oceanview should do if the market research information is not available

3.A decision strategy that Oceanview should follow if the market research is conducted

4. A recommendation as to whether Oceanview should employ the market research firm, along with the value of the information provided by the market research firm Include the details of your analysis as an appendix to your report.