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12.4-1. Reconsider the Fly-Right Airplane Co. problem introduced in Prob. 12.3-7. A more detailed analysis of the various cost and revenue factors now has
12.4-1. Reconsider the Fly-Right Airplane Co. problem introduced in Prob. 12.3-7. A more detailed analysis of the various cost and revenue factors now has revealed that the potential profit from pro- ducing airplanes for each customer cannot be expressed simply in terms of a start-up cost and a fixed marginal net revenue per air- plane produced. Instead, the profits are given by the following table. Profit from Customer Airplanes Produced 1 2 3 0 0 0 0 12345 -$1 million $1 million $1 million $2 million $5 million $3 million $4 million $5 million $6 million $7 million (a) Formulate a BIP model for this problem that includes con- straints for mutually exclusive alternatives. c (b) Use the computer to solve the model formulated in part (a). Then use this optimal solution to identify the optimal num- ber of airplanes to produce for each customer.
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