Question

a question in L.P (linear programming):

Is it possible to include the marketing budget of an established company as a constraint?

Hint* This is a franchised company.

The objective function stated that they want to maximize their profit of selling (reselling) particular products.

What about the costs of importing those products? Is it considered as a constraint too?

Much love&appreciates for whom will help.

Answer 1

Yes. It is possible to consider the marketing budget as a constraint in a problem which is looking to maximize the profit from Selling. The situation can be as below:

Product A: Profit per unit is 5$, Marketing cost is 2$ per unit

Product B: Profit per unit is 7$, Marketing cost is 3.5$ per unit

Total marketing budget = 1000$

So, there will be other constraints also in terms of maximum possible units that can be sold of A or B due to capacity constraint, cost of product etc.

Yes, cost of importing the products is also a constraint as there will be overall fixed cost for the company. If there are multiple products, then basis the profitability and market potential, company will consider cost as the constraints as it should not exceed total cost