Models
Booking hotel rooms is an important problem for hotel managers. On the one hand, they want rooms to be occupied, and because of this and cancellations, they often overbook, that is, they take more reservations than the available number of rooms. On the other hand, they don't want to overbook too extensively because it is expensive. Here, you can find a set of basic @RISK models to deal with this type of problems:
1. A deterministic model to get started.
2. Model with uncertainty in demand and other uncertainties, where all reservations are taken.
3. A version with reservation "booking" limits to prevent excessive overbooking.
4. A version with no reservation limits but correlated demands for the two types of rooms.
5. A version that determines optimal reservation limits.
Click here to see a video of this example.
