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An airline company must plan its fleet capacity and its long-term
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- An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 84 customers for this flight segment in three years, and management requires a capacity cushion of 25 percent, calculate the following:- the planned capacity requirement. the maximum number of customers the flight segment can accommodate. the efficiency rate of the flight segment assuming that the current effective capacity of the flight segment is 93 customers.arrow_forwardAn airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 80 customers for this flight segment in three years, what capacity requirement should be planned? Assume that management deems that a capacity cushion of 20 percent is appropriate. what the needed capacity requirement is ----------- customers per day. (Enter your response rounded up to the next whole number.)arrow_forwardA company has a factory that is designed so that it is most eficient (average unit cost is minimized) when producing 15,000 units of output each month. However, it has an absolute maximum output capability of 17,250 units per month, and can produce as little as 7,000 units per month without corporate headquarters shifting production to another plant. If the factory produces 10,925 units in October, what is the capacity utilization rate in October for this factory?arrow_forward
- An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, theaverage number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to theflight segment. If demand is expected to increase to 84 cus-tomers for this flight segment in three years, what capacityrequirement should be planned? Assume that managementdeems that a capacity cushion of 25 percent is appropriatearrow_forwardUnder ideal conditions, a picture frame manufacturing facility can produce 480 frames per day. Under normal conditions, the company schedules 434 frames per day. If the production manager sets the output rate to 382 frames per day, what is the resulting capacity cushion?arrow_forwardusinessman must decide whether to open a new mini grocery branch or simply extend the number of hours of its operation on its existing branch with a payoff of P 150,000. According to his friend, demand at the new location can either be low or high, which the probabilities are estimated to be 35% and 65%, respectively. If a new branch is opened and demand proves to be low, there is no need to operate on a 24-hr basis but instead, they will stick to 12-hrs operation with a payoff of P 100,000 or enhance marketing strategy through advertising. Projected response to advertising may either be favorable or not favorable, with estimated probabilities of 40% and 60%, respectively. If demand is favorable, the payoff grows to P 310,000 and if response is unfavorable, the payoff is P 120,000. The cost of advertising is P45,000. Required: a. Draw a decision treeb. Determine the expected value for each decision and event nodes.c. Which alternative is the best for the businessman?arrow_forward
- An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following: i. the planned capacity requirement. ii. the maximum number of customers the flight segment can accommodate.iii. the efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.arrow_forwardA manufacturer of ballet shoes has determined that its production facility has a design capacity of 300 shoes per week. Theeffective capacity, however, is 230 shoes per week. What is themanufacturer’s capacity utilization relative to both design andeffective capacity if output is 200 shoes per week?arrow_forwardIn the bakery, we have established that design capacity is 30 pies per day and effective capacity is 20 pies per day. Currently, the bakery is producing 27 pies per day. What is the bakery’s capacity utilization relative to effective capacity?arrow_forward
- c. An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following:-i. the planned capacity requirement.ii. the maximum number of customers the flight segment can accommodate.iii. the efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.arrow_forwardSuppose that an aircraft manufacturer desires to make a preliminary estimate of the cost of building a 600-MW fossil-fuel plant for the assembly of its new longdistance aircraft. It is known that a 200-MW plant cost $100 million 20 years ago when the approximate cost index was 400, and that cost index is now 1,200. The cost-capacity factor for a fossil-fuel power plant is 0.79. Estimate the cost using power sizing method.arrow_forwardA company manufactures a product using two machine cells. Each cell has a design capacity of 250 units per day and an effective capacity of 230 units per day. At present, actual output averages 200 units per cell, but the manager estimates that productivity improvements soon will increase output to 225 units per day. Annual demand is currently 50,000 units. It is forecasted that within two years, annual demand will triple. How many cells should the company plan to produce to satisfy predicted demand under these conditions? Assume 240 workdays per year.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,