Round Tree Manor is a hotel that provides two types of roomswith three rental classes: Super Saver, Deluxe, and Business. Theprofit per night for each type of room and rental class is asfollows:
Rental Class |
Room
| | Super Saver | Deluxe | Business |
Type I | $38 | $43 | — |
Type II | $16 | $28 | $45 |
Type I rooms do not have wireless Internet access and are notavailable for the Business rental class.
Round Tree's management makes a forecast of the demand by rentalclass for each night in the future. A linear programming modeldeveloped to maximize profit is used to determine how manyreservations to accept for each rental class. The demand forecastfor a particular night is 140 rentals in the Super Saver class, 50rentals in the Deluxe class, and 40 rentals in the Business class.Round Tree has 110 Type I rooms and 110 Type II rooms.
- Use linear programming to determine how many reservations toaccept in each rental class and how the reservations should beallocated 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 | |
- How many reservations can be accommodated in each rentalclass?
Rental Class | # of reservations |
SuperSaver | |
Deluxe | |
Business | |
