Problem 8 5 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 Room Type I $30 $35 Type II $15 $25 $35 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 130 rentals in the Super Saver class, 65 rentals in the Deluxe class, and 45 rentals in the Business class Round Tree has 90 Type I rooms and 130 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 Rental Class with room type No of Reservations Super Saver rentals allocated to room type I Super Saver 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 Demand by Select your answer DeluxeSuper SaverBusinessItem 6rental class was not satisfied (b) How many reservations can be accommodated in each rental class Rental Class No of Reservations Super Saver I Deluxe 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 Select your answer YesNoItem 11 Explain The input in the box below will not be graded, but may be reviewed and considered by your instructor (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 office to a Type I or a Type II room Type I Type II Shadow Price $ $ Convert an unused office area to Select your answer Type IType IIItem 15room (e) Could the linear programming model be modified to plan for the allocation of rental demand for the next night Select your answer YesNo

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Problem 8-5 Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit

Problem 8-5

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
Room	Type I	$30	$35	-
Type II	$15	$25	$35

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 130 rentals in the Super Saver class, 65 rentals in the Deluxe class, and 45 rentals in the Business class. Round Tree has 90 Type I rooms and 130 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.

Rental Class with room type	No of Reservations
Super Saver rentals allocated to room type I
Super Saver 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

Demand by- Select your answer -DeluxeSuper SaverBusinessItem 6rental class was not satisfied.

(b)

How many reservations can be accommodated in each rental class?

Rental Class	No of Reservations
Super Saver I
Deluxe
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?

- Select your answer -YesNoItem 11

Explain.

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

(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 office to a Type I or a Type II room?