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Question: Round Tree Resort is a hotel that provides two types of rooms Mountain View and Street View, with...
Round Tree Resort is a hotel that provides two types of rooms Mountain View and Street View, with three rental classes as follows: Super Saver, Deluxe, and Business Conference. The profit per night for each type of room and rental class is listed in Table A below. Note that all Business Conference customers are assigned street view rooms as these are located next to the conference center of the building. Table A: Profit per Night by Room Type and Rental Class Super Saver Deluxe Business Conference Mountain View Room $30 $35 NA Street View Room $20 $30 $40 Round Trees management makes a forecast of the nightly demand by rental class for each night in the future. An optimization model should be developed to maximize profit and determine how many reservations to accept for each rental class. The average nightly demand forecast for rooms in the Summer Vacation Season is 130 rooms in the Super Saver class, 60 in the Deluxe class, and 50 in the Business class. Round Tree will take no more reservations than the forecasted amounts of each reservation for each rental class. Round Tree has a limited number of each type of room. There are 100 Mountain View Rooms and 120 Street View Rooms.
The following decision variables should be used in the analysis:
S1 = number of Super Saver reservations taken for room type I
S2 = number of Super Saver reservations taken for room type II
D1 = number of Deluxe reservations taken for room type I
D2 = number of Deluxe reservations taken for room type II
B1 = number of Business reservations taken for room type II1.
ONLY NEED QUESTIONS 6-7 PLEASE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
5. If an existing space can be converted to create 20 additional mountain view rooms to increase S2 from 10 to 30, would this accommodate all the forecasted demand for the Super Saver class? Please answer using either a simple Yes or No for this question.
6. Next, for the space conversion considered in question 5, calculate the corresponding increase in Nightly Profit associated with increasing S2 from 10 to 30 per night.
7. What modification(s) would be required for this optimization model to be used in the Winter Holiday Season as opposed to the current Summer Vacation Season?
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