Hire-a-Car System rents three types of cars at two different locations. The profit made per day for each car type and company at the two locations is listed below:
Car Type
Company Type 1 Type 2 Type 3
A $25 $40 $10
B $30 $35 $45
The management forecasts the demand per day by car type. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each type of car. The demand forecast for a particular day is 125 rentals for Type 1 cars, 55 rentals for Type 2 cars, and 40 rentals for Type 3 cars. The company has 100 cars in location A and 120 cars in location B.
1. Use linear programming to determine how many reservations to accept for each car type and how the reservations should be allocated to the different locations.
2. Is the demand for any car type not satisfied? Explain