Management is currently exploring the option to expand service offerings to incl
ID: 2428596 • Letter: M
Question
Management is currently exploring the option to expand service offerings to include weekend package options. Three weekend accommodation/meal packages are being considered. With average occupancy around 70% and the majority are corporate clients who stay during the week, it is believed the inclusion of package options will result in an overall increase in weekend sales for which there is capacity for increase.
The expected selling price and costs for the packages are as follows and reflect a differential in the quality of the product being provided from a basic package through to a luxury package.
Under current staffing it has been determined that staff availability to perform the extra functions annually would be 40 hours for meals and 50 hours for beverages, 30 for decorations(table decorations, personalising welcome letter etc) and 50 hours for accommodation. The additional time to plan each of the package specifics, taking into account customer preferences, instruct purchase orders for each booking would be:
Required:
a) Formulate a linear programming model to determine the mix of packages to offer to maximise profit, showing all supporting calculations, and solve using a computer package (eg solver in Excel) to derive an optimum staffing schedule. (15 marks)
b) Comment on the solution including recommending if the packages should be offered and under what conditions (if any). (10 marks
Package 1 Package 2 Package 3 Selling price $200.00 $300.00 $450.00 Costs Meal 30 60 100 Beveridge 20 40 70 Decoration 15 40 60 Accommodation 100 120 160Explanation / Answer
It is very simple by observing this equation I think you will get it ok I will explain to you By observing this equation ( Optimal Solution: p = 155.556; x = 4.44444, y = 0, z = 0 ) The maximum profit should be 155.556 And the cobination should be Package 1(x) be 4.44 Package 2(y) be 0 Package 1(z) be 0
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