Anyone proficient with Excel Solver??

[holderoftruth]

I'm trying to figure out a problem using Excel solver.

Seasons has four resorts. Currently, Seasons, Inc is running a loss. Suppose you have the freedom to increase the fee per client-day to a maximum of $85 in only one of the four resorts, for which resort should she charge the $85 fee per client-day if she is looking to keep her loss to a minimum?

I've tried using IF and MAX constraints but I'm confused.

[sharkkiller]

The question does not really make sense to me. What does "You can only change a $85 price per client to only one hotel." mean?

[mmmbeans]

are you asking the huddle how to pad your books?

[Happy Panther]

I'm trying to figure out a problem using Excel solver.

There are four different hotels. You can only change a $85 price per client to only one hotel. Which hotel should charge the price so that the total income from all four hotels is at a maximum.

I've tried using IF and MAX constraints but I'm confused.

should be relatively easy with solver but as shark noted the question makes no sense

[holderoftruth]

I reposted the question. I just cannot seems to get the constraints to work.

[pstall]

have you run a table somewhere else online in an excel specific forum? that might be a good bet too.

[sharkkiller]

You need more information in order to make that decision. Excel Solver is not really going to help with that scenario, if you want to be able to make a realistic decision.

Some of the variables you will need to look at include:

Amenities at each resort - as in which could sustain the increase in price

Number of rooms at each resort

Current pricing of each resort

Location of each resort - One in Miami may be better suited than one in Myrtle Beach

Prices of neighboring resorts

The cost of each resort to run

This is just a few of the items that one must know before making such a business decision. If you can put together a slide show for me, I will schedule a webex and give you an answer by COB on Tuesday.

[holderoftruth]

have you run a table somewhere else online in an excel specific forum? that might be a good bet too.

Yeah this is the response I got:

You could set up a helper column and format it as binary. The sum of this binary column should be 1 (only one of the four resorts can be selected) and finally you to combine the result in the helper column with the $85 charge and the total cost for each resort.

That answer just made me more confused.

[holderoftruth]

You need more information in order to make that decision. Excel Solver is not really going to help with that scenario, if you want to be able to make a realistic decision.

Some of the variables you will need to look at include:

Amenities at each resort - as in which could sustain the increase in price

Number of rooms at each resort

Current pricing of each resort

Location of each resort - One in Miami may be better suited than one in Myrtle Beach

Prices of neighboring resorts

The cost of each resort to run

This is just a few of the items that one must know before making such a business decision. If you can put together a slide show for me, I will schedule a webex and give you an answer by COB on Tuesday.

I have an income statement for the company, which has all the information. I'm just having trouble telling solver to find the optimal resort for the $85 price hike.