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Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows: Rental Class Super Saver Deluxe Business Room Type I $30 $35 - Type II $15 $25 $35 Type I rooms do not have wireless Internet access and are not available for the Business rental class. Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 110 rentals in the Super Saver class, 55 rentals in the Deluxe class, and 40 rentals in the Business class. Round Tree has 90 Type I rooms and 110 Type II rooms.
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