SL Manor is a 5 star hotel that has two types of room with 3 rental classes: Saver, Standard and Deluxe. The profit per

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Sl Manor Is A 5 Star Hotel That Has Two Types Of Room With 3 Rental Classes Saver Standard And Deluxe The Profit Per 1 (55.01 KiB) Viewed 8 times

SL Manor is a 5 star hotel that has two types of room with 3 rental classes: Saver, Standard and Deluxe. The profit per night for each type of room and rental class is as follows: Room Type I Type II Rental Class Saver E25 E20 Standard £40 E35 Deluxe £45 Type 1 rooms do not have internet access and are not available for the Deluxe rental class. SL Manor's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximise profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 130 rentals in the Saver class, 60 rentals in the Standard class and 50 rentals in the Deluxe class. SL Manor has 100 Type 1 rooms and 120 Type II rooms. As a consultant you have been asked to support his decision making using an appropriate Operational Research model. 1, Management is considering offering a free breakfast to anyone upgrading from a Saver reservation to Standard Class. If the cost of the breakfast to SL Manor is £5, should this incentive be offered?