management science

Q1

(e) The management is considering to increase the rental profit for Type 2 room for Budget class to RO 30 per night, and asking you to find out if the optimal solution would change? Provide brief calculations.

(f) Now the management asking you to modify the model to plan for the allocation of rental demand for the following night. What information you would need for this purpose and how would you change the model?

Question 1 40 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 Room Type Budget Budget-Plus Deluxe Type 1 30 Type 2 25 35 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 roords. 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. 45 Table 1: Variable Cells Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 40 0 30 0 30 70 0 25 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 20 Constraints Cell Name $G$5 Budget $G$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 15 70 40 Now using the information in Table 1 above answer the following questions from a-f. Question 1 40 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 Room Type Budget Budget-Plus Deluxe Type 1 30 Type 2 25 35 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 roords. 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. 45 Table 1: Variable Cells Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 40 0 30 0 30 70 0 25 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 20 Constraints Cell Name $G$5 Budget $G$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 15 70 40 Now using the information in Table 1 above answer the following questions from a-f