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 Wednesday night, the hotel estimates that the demand from the leisure travelers could fill the whole hotel while the demand from business travelers follows a uniform distribution over [ Number 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.) What does the optimal solution tell you about the expected marginal revenue from the business travelers? Please explain. What would be the optimal number of rooms kept for business travelers if the number of rooms demanded by the business travelers was uniformly distributed on [10,120]? The Sherhilton Hotel declared a fare war by slashing business travelers’ prices down to $150. The Inn at Penn had to match that fare to keep demand at the same level. What will be the optimal protection level using the uniform distribution given in part (c) above.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
- 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 Wednesday night, the hotel estimates that the demand from the leisure travelers could fill the whole hotel while the demand from business travelers follows a uniform distribution over [
Number 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.)
- What does the optimal solution tell you about the expected marginal revenue from the business travelers? Please explain.
- What would be the optimal number of rooms kept for business travelers if the number of rooms demanded by the business travelers was uniformly distributed on [10,120]?
The Sherhilton Hotel declared a fare war by slashing business travelers’ prices down to $150. The Inn at Penn had to match that fare to keep demand at the same level. What will be the optimal protection level using the uniform distribution given in part (c) above. Please explain your answer.
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