Optimal table-mix and acceptance–rejection problems in restaurants
by Sandeep Karmarkar, Goutam Dutta
International Journal of Revenue Management (IJRM), Vol. 5, No. 1, 2011

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.

Online publication date: Tue, 15-Feb-2011

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Revenue Management (IJRM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com