Optimal table-mix and acceptance–rejection problems in restaurants Online publication date: Tue, 15-Feb-2011
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
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