management science

Q1

(a) Looking at the Sensitivity table above explain briefly by answering if the demand by any of these the classes is not satisfied.

(b) Write down how many bookings the hotel should accept in each rental class?

Styles Paragraph Question 1 You have been offered a job of Operations Manager at a local hotel in Al-Khoud and you are given the following problem with some questions. Your task is to find the answers to those questions to help the hotel management to make informed decisions and maximize total profit. Problem: A hotel in Al-Khoud provides two types of rooms with three rental classes: Budget, Budget-Plus, and Deluxe. The profit (in RO) per night for each type of room and rental room class is shown as follows: Rental Room Class 40 Room Type Budget Budget-Plus Deluxe Type 1 1 30 Type 2 25 35 45 The above table shows that Type 1 rooms are not available for the Deluxe rental room class due to lack of some facilities. Since you took an optional course "Forecasting Methods" as a part of your degree plan, you decided to conduct a demand forecast by rental class for each night in future. The demand forecast for a particular night found is 125 rentals in the Budget class, 55 rentals in the Budget-Plus, and 45 rentals in the Deluxe class. Currently the hotel has 95 Type 1 rooms and 115 Type 2 rooms. You decided to develop a linear programing based Excel model to help you to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types to maximize profit. You then solved the model using Solver tool and created following Sensitivity analysis Table 1. Table 1: Variable Cells 30 Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 40 0 30 0 70 0 20 0 55 0 40 1E+30 0 0 0 35 0 1E+30 45 0 45 1E+30 20 Cell Name $B$10 Solution: Budget Type 1 $C$10 Solution: Budget Type 2 SD$10 Solution: Budget-Plus Type 1 $E$10 Solution: Budget-Plus Type 2 $F$10 Solution: Deluxe 25 Constraints Cell Name $G$5 Budget SG$6 Budget-Plus $G$7 Deluxe $G$8 Type 1 $G$9 Type 2 Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 110 0 125 1E+30 15 55 10 55 15 45 20 45 70 15 95 30 95 15 40 115 25 115 70 40 15 Now using the information in Table 1 above answer the following questions from a-f