Q2. You are in charge of the revenue management department at the Richardson's Days Out Hotel, which has a total of 200 rooms. Xpedia (a travel fare aggregator company) is offering to buy your rooms for Valentine's Day at a rate of $200. On the other hand, you can book the rooms through your own website (which is far less popular than Xpedia) at a rate of $300. The demand on your own website follows a normal distribution with mean 20 and standard deviation 5, and all the rooms that you did not sell to Xpedia nor booked through your website result unoccupied. a. How many rooms should you sell to Xpedia?

Q2. You are in charge of the revenue management department at the Richardson's Days Out Hotel, which has a total of 200 rooms. Xpedia (a travel fare aggregator company) is offering to buy your rooms for Valentine's Day at a rate of $200. On the other hand, you can book the rooms through your own website (which is far less popular than Xpedia) at a rate of $300. The demand on your own website follows a normal distribution with mean 20 and standard deviation 5, and all the rooms that you did not sell to Xpedia nor booked through your website result unoccupied. a. How many rooms should you sell to Xpedia?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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