Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 8-21 (Algorithmic) Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The

image text in transcribedimage text in transcribedimage text in transcribed
image text in transcribedimage text in transcribedimage text in transcribed
Problem 8-21 (Algorithmic) Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows: Rental Class Super Saver Deluxe Business Type I $38 $43 Rm Type II $16 $28 $45 Type I rooms do not have wireless Internet access and are not available for the Business rental class. Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 140 rentals in the Super Saver class, 50 rentals in the Deluxe class, and 40 rentals in the Business class. Round Tree has 110 Type I rooms and 110 Type II rooms. a. Use linear programming to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types. Variable # of reservations SuperSaver rentals allocated to room type I SuperSaver rentals allocated to room type II Deluxe rentals allocated to room type I Deluxe rentals allocated to room type II Business rentals allocated to room type II Is the demand by any rental class not satisfied? Why? The input in the box below will not be graded, but may be reviewed and considered by your instructor. e. Could the linear programming model be modified to plan for the allocation of rental demand for the next night? What information would be needed and how would the model change? The input in the box below will not be graded, but may be reviewed and considered by your instructor. Is the demand by any rental class not satisfied? Explain. The input in the box below will not be graded, but may be reviewed and considered by your instructor. b. How many reservations can be accommodated in each rental class? #of reservations Rental Class SuperSaver Business c. Management is considering offering a free breakfast to anyone upgrading from a Super Saver reservation to Deluxe class. If the cost of the breakfast to Round Tree is $5, should this incentive be offered? d. With a little work, an unused office area could be converted to a rental room. If the conversion cost is the same for both types of rooms, would you recommend converting the ofce to a Type I or a Type II room

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Charles E. Davis, Elizabeth Davis

4th Edition

1119577667, 978-1119577669

More Books

Students also viewed these Accounting questions