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Alaska Air has been in the airline business for more than 15 years and it has an aging fleet of Boeing 757 jet airplanes. In
Alaska Air has been in the airline business for more than 15 years and it has an aging fleet of Boeing 757 jet airplanes. In order to catch up in the competitive industry of air transport, it is considering a major purchase of up to 17 new Boeing models 787 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 787 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 Boeing 787; (4) the annual maintenance budget is to be no more than $ 8 million; (5) the annual maintenance cost per Being 787 is estimated to be $800,000, and it is $ 500,000 for each Boeing 767 purchased; and (6) each Boeing 787 can carry 125,000 passengers per year, whereas each Boeing 767 can fly 81,000 passengers annually. Using the product mix and integer programming model in MS Excel, find the maximum annual passenger capability of an optimum combination of purchases of Boeing 787 and Boeing 767 jets
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