An airline owns an aging fleet of Boeing 737 jet airplanes. It is considering a major purchase
Question:
An airline owns an aging fleet of Boeing 737 jet airplanes.
It is considering a major purchase of up to 17 new Boeing model 757 and 767 jets. The decision must take into account numerous cost and capability factors, including the following:
(1) The airline can finance up to $1.6 billion in purchases;
(2) Each Boeing 757 will cost $80 million, and each Boeing 767 will cost $110 million;
(3) At least one-third of the planes purchased should be the longer-range 757;
(4) The annual maintenance budget is to be no more than $8 million;
(5) The annual maintenance cost per 757 is estimated to be $800,000, and it is $500,000 for each 767 purchased;
(6) Each 757 can carry 125,000 passengers per year, whereas each 767 can fly 81,000 passengers annually. Formulate this as an integer programming problem to maximize the annual passenger-carrying capability. What category of integer programming problem is this? Solve this problem.
Step by Step Answer:
Quantitative Analysis For Management
ISBN: 162
11th Edition
Authors: Barry Render, Ralph M. Stair, Michael E. Hanna