Question
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
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
RoomSuper SaverDeluxeBusinessType I$36$38Type II$15$26$38Type 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, 60 rentals in the Deluxe class, and 40 rentals in the Business class. Round Tree has 125 Type I rooms and 135 Type II rooms.
- 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 reservationsSuperSaver rentals allocated to room type Ifill in the blank 1
- SuperSaver rentals allocated to room type IIfill in the blank 2
- Deluxe rentals allocated to room type Ifill in the blank 3
- Deluxe rentals allocated to room type IIfill in the blank 4
- Business rentals allocated to room type IIfill in the blank 5
- 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.
- How many reservations can be accommodated in each rental class?
- Rental Class# of reservationsSuperSaverfill in the blank 8
- Deluxefill in the blank 9
- Businessfill in the blank 10
- 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?
- 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?
- Why?
- The input in the box below will not be graded, but may be reviewed and considered by your instructor.
- 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.
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