Hervis Car Rental in Austin, TX has 50 high-performance Shelby-H Mustangs in its
ID: 3290132 • Letter: H
Question
Hervis Car Rental in Austin, TX has 50 high-performance Shelby-H Mustangs in its rental fleet. These cars will be in greater demand than usual during the last weekend in July when the Central Texas Mustang Club holds its annual rally in Austin. At times like this, Hervis uses a revenue management system to determine the optimal number of reservations to have available for the Shelby-H cars. Herms has agreed to have at least 60% of its Shelby-H Mustangs available for rally attendees at a special rte. Although many of the rally attendees will request a Saturday and Sunday two-day package, some attendees may select a Saturday only or a Sunday only reservation. Customers not attending the rally may also request a Saturday and Sunday two-day package, or make a Saturday only or Sunday only reservation. Thus, six types of reservations are possible. The cost for each type of reservation is shown here. Two-Day Saturday Sunday Only $75 $85 Package 125 S150 Only S65 $75 Rally Regular The anticipated demand for each type of reservation is as follows: Two-Day Saturday Sunday Only 10 20 Package 20 10 Rally Regular 15 25 many Shelby-H Mustangs to make available for each typeo reservation in order to maximize total revenue. Decision variables are: RATW number of reservations available for rally attendees for two days RGTW number of reservations available for regular customers for two days RASA = number of reservations available for rally attendees for Saturday only RGSA number of reservations available for regular customers for Saturday only RASU number of reservations available for rally attendees for Sunday only RGSU number of reservations available for regular customers for Sunday onlyExplanation / Answer
17.
A car would be reserved on saturday for Saturday only and for two days package.
So, LP constraint due to saturday rental capacity management is
Total reservation for rally and regular attendees for Saturday only and Two days package should not exceed total cars (50)
that is RATW + RGTW + RASA + RGSA <= 50
Hence (c) is the correct answer.
18.
Atleast 60% capacity is for rally attendees so, 50*0.6 = 30 cars are reserved for rally attendees.
So, LP constraint due to saturday rental capacity management and 60% capacity is for rally attendees is
Total reservation for rally attendees for Saturday only and Two days package should be atleast 30.
that is RATW + RASA >= 30
Hence (c) is the correct answer.
19.
Atleast 60% capacity is for rally attendees so, 50*0.6 = 30 cars are reserved for rally attendees.
So, LP constraint due to sunday rental capacity management and 60% capacity is for rally attendees is
Total reservation for rally attendees for sunday only and Two days package should be atleast 30.
that is RATW + RASU >= 30
Hence (d) is the correct answer.
20.
We need to minimize the total cost which is 2M + 3B subject to the constraint M + B = 4000
where M is the number of units to make and B is number of units to buy.
So, the objective function is Min 2M + 3B
Hence (d) is the correct answer.