Question: Tablo 1: Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$10 Solution: Budget Type 1 40 0 30 0

Tablo 1: Variable Cells Final Reduced Objective
Tablo 1: Variable Cells Final Reduced Objective
Tablo 1: Variable Cells Final Reduced Objective Allowable Allowable Cell Name Value Cost Coefficient Increase Decrease $B$10 Solution: Budget Type 1 40 0 30 0 30 $C$10 Solution: Budget Type 2 70 0 25 20 0 $D$10 Solution: Budget-Plus Type 1 55 0 40 16.30 0 $E$10 Solution: Budget-Plus Type 2 0 0 35 15.30 $F$10 Solution: Deluxe 45 0 45 1E+30 20 Constraints Cell Name $G$5 Budget SGS6 Budget-Plus $G$7 Deluxe $G$8 Type 1 $G$9 TV2 Final Shadow Constraint Allowable Allowable Value Price R.H. Side Increase Decrease 110 0 125 1E+30 15 55 10 55 40 15 45 20 45 70 15 95 30 95 15 40 115 25 115 15 70 Now using the information in Table 1 above answer the following questions from a-f. (a) Looking at the Sensitivity table above explain briefly by answering if the demand by any of these the classes is not satisfied. Answer: (b) Write down how many bookings the hotel should accept in each rental class? Answer: (c) The management has asked you to find out if they could consider offering a free breakfast to anyone upgrading from a Budget class to Budget-Plus class. The management calculated the cost of the breakfast to the hotel is RO 5. By looking at the model output in the table above, should the management offer this incentive to the customers? Provide a brief explanation. Answer: (d) The management realized that an unused office room could be converted to a rental room with a little work, and the conversion cost is the same for both types of rooms. By looking at the model output in the table above would you recommend the management to convert the office to a Type 1 or Type 2 room? Provide brief reasoning to your answers. {3} Answer: (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. {4} Answer: (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? {4}

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