Linear Programming for a caravan park management
In this case study you work as a manager of a small caravan park. The total area of the caravan park is 1800 sq.m. Your caravan park accepts caravans and tents. For a safety reasons, there are standards for allocated spaces: 160 sq.m. per caravan and 90 sq.m. per tent. Also, you are not allowed to have more than 6 caravans in your caravan park. There are also sanitary restrictions stating that there can be 4 people in the caravan and only 3 people in the tent. Total caravan park occupancy should not exceed 48 people.
You charge clients per night and prices are $30 for caravan and $15 for tent. What is the highest possible profit you can get per night? Use Excel Solver to solve this problem. From your Answer Report, describe the optimal solution.
Use Sensitivity Report from your optimal solution to consider the following scenarios (each one independently) and their effects on your solution and caravan park management:
1. You got greedy and decided to increase price for caravan by 100%.
2. You got very greedy and decided to increase price for tent by 100%.
3. Government relaxed restrictions for the number of caravans and allowed to have 50% more caravans.
4. Government implemented COVID-restrictions and did not allow more than 30 people in the caravan park.