Find the optimal number of rooms to be kept for business

Assignment Help Operation Management

Reference no: EM131841271

The Inn at Penn has 150 rooms with standard queen size beds and two rates: a full price of $200 and a discount price of $ 120.

To receive the discount price, a customer must purchase the room at lease two weeks in advance ( this helps to distinguish between the business travelers, who value the flexibility of booking late and leisure travelers who tend to book early).

For a particular Tuesday night, the hotel estimates that the demand from the leisure travelers could fill the whole hotel while the demand from business travelers follows the following empirical distribution.

# of rooms demanded	Probability
10-25	0.05
26-41	0.10
42-57	0.20
58-73	0.30
74-89	0.20
90-105	0.10
106-121	0.05

Please note that any unsold room that was protected for business travelers will not bring any revenue, i.e., it will remain vacant.

Find the optimal number of rooms to be kept for business travelers (i.e., number of rooms to be protected from sale at a discount.)

Reference no: EM131841271

Questions Cloud

Describe the major causes of wwi : 1. Describe the major causes of WWI 2. Discuss the effects of WWI in Eastern Europe, Western Europe, and the Middle East.

Create an organizational chart of wilson healthcare services : Analyze key organizational dependencies to assess functionality - Read the article Organizational Chart. Create an organizational chart of your company

Calculate the total expected cost of the project : You work at a regional health care center and have been asked to calculate the expected cost for a software project in your organization.

Discuss the various technological innovations : 1. Discuss the various technological innovations that occurred during the period 1900-1950.

Find the optimal number of rooms to be kept for business : Find the optimal number of rooms to be kept for business travelers (i.e., number of rooms to be protected from sale at a discount.)

Explain the status of samurai in premodern japan : Question: Explain the status of samurai in premodern Japan in society.

Develop an argument against the development projects : Develop an argument in support of megadam construction. Develop an argument against these development projects.

What major fissures developed in the three-world order : What challenges did each world bloc face? What major fissures developed in the three-world order?

What was the idea surrounding the containment policy : 1. What was the idea surrounding the containment policy? Who were the major players, and was this policy successful?

User Account

All Pages