Hervis Car Rental in Austin TX has 50 highperformance Shelby

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.
Hervis has agreed to have at least 60% of its Shelby-H Mustangs available for rally attendees at a
special rate. 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
Package Only Only
Rally 125 $75 $65
Regular $150 $85 $75

The anticipated demand for each type of reservation is as follows:

Two-Day Saturday Sunday
Package Only Only
Rally 20 10 15
Regular 10 20 25

Hervis Car Rental would like to determine how many Shelby-H Mustangs to make available for each
type of reservation in order to maximize total revenue.

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 only

1) What are the LP constraint due to saturday car rental capacity manegment for Shelby-H- Mustangs?

A) ratw+rasa+RGSA <=50

B) RATW+RASA+RGSA<=25

C) RATW+RGTW+RASA<,=50

D) NONE OF THE ABOVE

2) LP contraint due to saturday car rental capacity managment for Shelby-H- Mustang for at least 60% capacity going to the rally attendees is?

a) RATW+RASARGSA>=30

b) RATW+RASA+RGSA>30

c) RATW+RASA>=30

d) None of the above

3) What is the LP contraint due to sunday car rental capacity manegment for shelby-h-Mustangs for at leat 60% capacity going to the rally atendees:

a) RATW+RASA+RGSA>=30

b) RATW+RASA+RGSA>30

c) RATW+RASU<=30

d) None of the above

Just a brief expenation for each question would be apreciated! thanks

Solution

1. A is correct option

because the total rental capacity for saturday and sunday will be 10+20= 30 only

2. option B is correct

3. option C is correct