Question: Identify the problem, objective, constraints and decision variables in the following case, as well as writing the constraints and objectives in terms of decision variables.
Identify the problem, objective, constraints and decision variables in the following case, as well as writing the constraints and objectives in terms of decision variables.
A large hotel chain aims to optimize its pricing and room allocation strategy to maximize revenue. The hotel has a limited number of rooms of various types standard deluxe, and suite and faces varying demand throughout the year.
For the upcoming year, the availability of different room types is as follows:
Number of standard rooms:
Number of deluxe rooms:
Number of suites:
The total number of available rooms is The allocation for each room type must not exceed these availabilities.
The manager has reviewed past data and experiences to set the price range for each type of room:
Standard room: $ $
Deluxe room: $ $
Suite: $ $
To cover operational costs, the manager requires a minimum occupancy rate of
The manager now seeks to determine how to dynamically adjust room prices and allocate rooms efficiently to maximize profit.
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