Abstract
This study aims to determine the optimal quantity of pages and the optimal quantity of each size advertisement that a magazine should have to maximize profit in a publishing house. The solution of this problem is based on operations research method application and is composed by four steps: (i) defining the problem, (ii) algorithm application, (iii) modeling scenarios and (iv) decision-making. The application of the method is performed in a publishing house data and the problem is solved by linear programming perspective. The results indicate that it is possible to maximize the total profit finding the optimal quantity of advertisements. The main contribution of the paper is to illustrate the use of operations research at service industries through a publishing house case. In conclusion, the method proposed to improve the ads allocation regarding the maximum profit.
Highlights
The need to make the best decisions about the use of the available resources in World War II emerged from the use of optimization problems (Dym, 2004)
To support the decision-making, an optimization problem needs to be modeled through an objective determination, which is the structure that will be optimized, and the variables that are the parameters that will be changed in the optimization process (Christensen et Bastien, 2015)
A publishing house has the objective of improving the process of producing magazines while maximizing the profit
Summary
The need to make the best decisions about the use of the available resources in World War II emerged from the use of optimization problems (Dym, 2004). Boskamp et al (2011), proposes the use of heuristics algorithms to solve the Web banner advertisements allocation problem. This problem is classified as two-dimensional, single, orthogonal, and knapsack. Kumar et al (2006), propose the heuristics algorithms to solve the schedule advertisements on the web problem in order to maximize revenue. When comparing the existing approach with the developed one, the performance of the hybrid GA is better than the GA algorithm, proving that the use of the developed algorithm can improve the revenue of the web advertisement schedule In these scenarios, a publishing house that produces magazines with advertisements wants to maximize the total profit per magazine produced. Equation 2 demonstrates a constraint where are the variables and the is the maximum value that the function can assume
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