Linear Programming for Revenue Management in Hotel Industry

Linear Programming (LP) is the mathematical technique for optimum allocation of 'scarce' of 'limited' resources, such as labour, material, machine, capital, energy and so on, to several competing activities, such as products, services, jobs, new equipment, projects, and so on, on the basis of a given criterion of optimality. This paper is an insight into how LP can be made use of in the hotel industry too, where the use has been limited in India. A simple optimisation case has been tried to solve graphically and arrive at an optimal solution in an F&B Production department of a hotel.