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
Type I rooms do not have high-speed 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, 65 in the Deluxe class, and 40 in the Business class. Round Tree has 100 Type I rooms and 120 Type II rooms.
(b) For the solution in part (a), how many reservations can be accommodated in each rental class?
(c) 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?
(d) Could the linear programming model be modified to plan for the allocation of rental demand for the next night? yes or no?
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