Hotel Location Problem Using Erlang Queuing Model under Uncertainty (RESEARCH NOTE)

Determining and selecting an appropriate location to construct a hotel is one of the most challenging concerns which hotel industry investors are facing with. In this study we attempt to find a suitable response to this research/application need by a mathematical model using the queueing theory and the fuzzy logic. Therefore hotel, the reception system and travelers accommodations are formulated by appropriate queueing models. Considering the fact that the arrival rate for hotel and the amount of time spent in hotel is uncertain thus a profit function is defined using the fuzzy logic and the fuzzy queueing models. Using the values of this function, candidate locations for constructing a hotel are compared and the one with maximum profit for the investors is selected. Due to using fuzzy parameters in the profit function, the amounts of profit obtained for different locations are in the form of fuzzy numbers, thus we use fuzzy ranking techniques to prioritize the candidate locations for constructing the hotel.