Answers
Answer(a): Using Linear programming, let us calculate the number of reservations to accept in each rental class:
For the Class 1 rental = 
= 
+ 
> f (100 x 0.01) = 100 + 100
> f 1 = 200
>f = 200
& For the Class II rental = = +
> f (120 x 0.01) = 120 + 120
> f 1.2= 240
>f = 166
Answer (b): For the First rental class, the total accomodation of rental rooms would be :
(130 + 60 + 50) - 200
> 240 - 200 = 40
i.e. 200 out of the 240 reservations can be made.
& For the Second rental class, the total accomodation of rental rooms would be :
(130 + 60 + 50) - 166
> 240 - 166 = 74
i.e. 166 out of the 240 reservations can be made.
Answer (c): The consideration of the management to offer free breakfast to the people who upgrade from Super Saver to Delux rooms at the cost of $5 can only be fruitful or executed only if the total benefit derived out of the offer made increased the number of upgraders which would directly increase the profit margin for the hotel and therefore prove t be beneficial for the hotel.
Answer (d) : If we have to choose from the two types of rooms for the upgraded room from the office, then we would want to prefer the Type II room, This is because, it is expected that more people would want to opt for the lesser rental room with the high speed internet service, and there is more probability for the Type II room to be getting an additional room for the consumers.
Answer (e): In order to use the linear model to accomodate the information for the next night, the primary information required would be the preference level of the consumers to choose the same or the different type of rental rooms after spending a night in their first perefered rentl room. Once we have the data of the preference of the consumers for the next night, the limear programming model can then be used in order to derive the expected allocation of demanf for the rental rooms for the next night.