In: Operations Management
Devos Inc. is building a hotel. It will have 4 kinds of rooms: suites where customers can smoke, suites that are non-smoking, budget rooms where the customers can smoke, and budget rooms that are non-smoking. When we build the hotel, we need to plan for how many rooms of each type we should have. The following are requirements for the hotel:
We will solve this linear programming problem using Excel solver as shown in below Excel screen prints.
We will setup Data -> Solver with decision variables, constraints and objective function in Excel as shown below.
Click solve to get the optimal solution as below:
Optimal solution is
Room Type | Number of rooms |
Suite- Smoking | 4 |
Suite- Non-smoking | 196 |
Budget- Smoking | 0 |
Budget- Non-smoking | 374 |
Revenue is $90,440
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