 Optimal table-mix and acceptance–rejection problems in restaurantsSandeep Karmarkar and Goutam Dutta International Journal of Revenue Management, 2011, vol. 5, issue 1, 1-15 Abstract: In this paper, we address the issue of capacitated revenue management (RM) in the restaurant industry. First we present an integer programming (IP) model to find the optimal table-mix for a restaurant. Then we address the acceptance–rejection issue by IP to incorporate the continuous realisation of actual demand over a finite time horizon. We also analyse the implications of various manually easy-to-implement operational policies like one-up (parties can be seated at tables of the same or next-higher size) and higher levels of nesting. Our results show that an RM model yields about 33% additional revenue over one-up nesting. Also, the high percentage of optimal revenue (using RM models) achieved by some of these policies is associated with an increase in waiting time. Keywords: table-mix; capacity allocation; restaurants; simulation; acceptance–rejection policies; optimisation models; one-up nesting; waiting times; penalty functions; capacitated revenue management; integer programming; continuous realisation; actual demand; finite time horizons; operational policies; catering industry; hospitality industry; manual operations; table seating; additional revenue; optimal revenues; Ahmedabad; India. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijrevm:v:5:y:2011:i:1:p:1-15 Access Statistics for this article More articles in International Journal of Revenue Management from Inderscience Enterprises Ltd |
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