Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 694 views

    Round Tree Manor

    Uploaded by

    Mahidhar Surapaneni
    The document outlines a linear programming model to optimize room allocation and rental class demand across 3 rental classes (Super Saver, Deluxe, Business) and 2 room types, given estimated demand and constraints on available rooms, with the goal of maximizing total contribution. The optimal solution allocates rooms to meet most of the demand but falls short by 5 Super Saver rooms due to limited total rooms. Converting unused space to additional rooms could help meet more demand and increase profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Round Tree Manor

    Uploaded by

    Mahidhar Surapaneni
    694 views3 pages
    The document outlines a linear programming model to optimize room allocation and rental class demand across 3 rental classes (Super Saver, Deluxe, Business) and 2 room types, given estimated demand and constraints on available rooms, with the goal of maximizing total contribution. The optimal solution allocates rooms to meet most of the demand but falls short by 5 Super Saver rooms due to limited total rooms. Converting unused space to additional rooms could help meet more demand and increase profits.

    Original Description:

    Round tree linear programming

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document outlines a linear programming model to optimize room allocation and rental class demand across 3 rental classes (Super Saver, Deluxe, Business) and 2 room types, given estimated demand and constraints on available rooms, with the goal of maximizing total contribution. The optimal solution allocates rooms to meet most of the demand but falls short by 5 Super Saver rooms due to limited total rooms. Converting unused space to additional rooms could help meet more demand and increase profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    694 views3 pages

    Round Tree Manor

    Uploaded by

    Mahidhar Surapaneni
    The document outlines a linear programming model to optimize room allocation and rental class demand across 3 rental classes (Super Saver, Deluxe, Business) and 2 room types, given estimated demand and constraints on available rooms, with the goal of maximizing total contribution. The optimal solution allocates rooms to meet most of the demand but falls short by 5 Super Saver rooms due to limited total rooms. Converting unused space to additional rooms could help meet more demand and increase profits.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3
    At a glance
    Powered by AI
    The document discusses optimizing room allocation across different rental classes at a hotel to maximize profits while meeting demand. A linear programming model is presented to allocate rooms of different types to rental classes based on their revenue contributions.

    The room allocation is optimized using a linear programming model that aims to maximize the total net contribution by efficiently allocating the appropriate room type to each rental class, subject to constraints of the available number and type of rooms.

    The demand for 5 additional Super Saver rentals is not met since Super Saver yields the least minimum contribution, so satisfying its full demand would not maximize the overall contribution as per the linear programming solution.

    As communicated, the Round Tree Manor offers three rental class with the following

    estimated demand:

    Rental Class Demand


    estimate
    Super Saver 120
    Deluxe 65
    Business 40

    As indicated, there are two room types are available for allotting the above-
    mentioned Rental classes

    Room Type Available


    Rooms
    Type I 105
    Type II 115

    Given below is the contribution of each room type to a rental class

    Room Type / Rental Super Deluxe Busines


    Class Saver s
    Type I $35 $37 NA
    Type II $24 $34 $43

    The goal is to optimize the net total contribution by efficient allocation of the
    appropriate room type to the rental class.
    However, there is a limitation on the available number by the room types.
    Hence, it is critical to optimize the allotment within the given constraint.

    Solution:
    Super Saver rooms allotted to Room Type I : 105
    Deluxe rooms allotted to Room Type I :0
    Super Saver rooms allotted to Room Type II : 10
    Deluxe rooms allotted to Room Type II : 65
    Business rooms allotted to Room Type II : 40

    The demand for 5 rentals Super Saver rental class is not satisfied
    If we see the total demand estimated across all the rental types is 225
    However, the total number of available room types are only 220
    Hence there is a shortage of 5 rooms at an overall level. And since Super Saver
    yields the least minimum contribution, the linear programming did not satisfy the 5
    additional rentals of Super Saver to maximize the overall contribution.
    Total Reservations accepted in each of the rental class:

    Rental Class Total Estimated


    Allocated forecast
    Super Saver 115 120
    Deluxe 65 65
    Business 40 40

    As per the optimum solution, there are 10 Super Savers, which are allotted the
    Room Type II (where the yield is only $24 compare to that produced by deluxe of
    $34)
    If we convert these Super Saver (allotted in Room Type II) we stand to gain $10 per
    room, while the cost to us is only $5.
    However, we should not convert the number of Super Savers by more than 10,
    because post that yield realized by converting into Deluxe drops and hence not
    viable for the expenditure to be incurred.
    If an unused office area can be converted into a room, for the given demand I would
    prefer to convert into Room Type I as the yields for Super Saver and Deluxe rental
    class is higher in Room Type I. Since there are 5 unmet Super Saver class,
    converting the unused office into Room Type I will fetch us a yield of $35.
    The current LP model can be modeled to plan for the allocation of the rental
    demand for the next night. All that needs to be changed is only the number of
    rooms available and the new estimated demand across the rental classes.

    Linear Programming Model:


    Decision Variables
    S1 : Number of super saver rental class allotted with Room Type I
    S2 : Number of super saver rental class allotted with Room Type II
    D1 : Number of deluxe rental class allotted with Room Type I
    D2 : Number of deluxe rental class allotted with Room Type II
    B2 : Number of business rental class allotted with Room Type II
    SM : Number of missed out super saver rental class
    DM : Number of missed out deluxe rental class
    B2 : Number of missed out business rental class
    Model:
    Objective Function
    Maximize 35*S1 + 24*S2 + 37*D1 + 34*D2 + 43*B2 // Maximizing the total net
    Contribution

    Constraints:
    S1 + D1 <= 105 // Total number of Room Type I is max of 105
    S2 + D2 + B2 <= 115 // Total number of Room Type II is max of 115
    S1 + S2 + SM = 120 // Total demand of Super Saver rental class is
    120
    D1 + D2 + DM = 65 // Total demand of Deluxe rental class is 65
    B2 + BM = 40 // Total demand of business rental class is 40
    S1, S2, D1, D2, B2, SM, DM, BM >= 0 // Non-negative solution values

    You might also like