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  3. this was already posted and someone did it but had...

Question: this was already posted and someone did it but had...

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***This was already posted, and someone did it but had the incorrect solution and did not complete the problem.

The Pantall has the following rooms available: 20 Luxury Suites, 45 Regular Rooms, and 30 Economy Rooms. Needless to say, a successful Groundhog Day is very important to the Pantall.  For the night of February 1, the rooms are priced per night as follows:

Luxury Suites

Regular Rooms

Economy Rooms

Early Bird Rate (until December 31)

$200

$100

$75

Standard Rate

$375

$250

$200

Last Minute Rate

$475

$350

$300

Demand for the rooms (the number of prospective customers willing to pay each price) is as follows:

Luxury Suites

Regular Rooms

Economy Rooms

Early Bird Rate (until December 31)

18

25

28

Standard Rate

12

23

10

Last Minute Rate

5

8

5

Management would like to have:

  • At least 8 luxury suites sold at early bird rate
  • At least 20 regular rooms sold at early bird rate
  • At least 20 economy rooms sold at early bird rate
  • At least 5 luxury suites sold at standard rate
  • No more than 15 total rooms at the last minute rate

Prepare a formulation of the problem and solve it using Excel Solver.  Then, critique the management constraints; explain what you'd do differently and why.

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