Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Formulate, but do not solve the Josiahs Jets problem that is described Josiah's Jets builds small jet aircraft to sell to major corporations for executive

image text in transcribed

Formulate, but do not solve the Josiahs Jets problem that is described

Josiah's Jets builds small jet aircraft to sell to major corporations for executive use. To meet the needs of these executives, Josiah's custom designs each fleet of jets that its clients purchase. Custom designing the jets incurs a substantial set up cost in order to create logos and initiate production of a client's fleet. Josiah's Jets has recently received requests from four potential new customers, but because of some shorter than normal deadlines and a relatively heavy workload due to previously accepted contracts, they will not be able to fill all four of these client requests. Therefore, a decision needs to be made now on the exact number of jets Josiah's Jets can agree to produce (if any) for each of the four potential clients. Because of its stature as a price leader, it is assumed that Josiah can convince each of the new clients to allow them to produce either their entire fleet, or any subset of that fleet. The production manager at Josiah's Jets has indicated that the company has the capacity to build a total of at most 16 planes to accommodate these new clients. Relevant data are given in the table below. The first row indicates the one time set up costs required for beginning production of customized aircraft for each of the new clients, the next two rows show the anticipated selling prices and variable unit production costs for the jets in each client's fleet, and the last row gives the total number of jets that each client intends to purchase for its fleet. Formulate an Integer Linear Programming model that Josiah's Jets can use to determine the number of jets that they should agree to produce for each of the four new clients so as to maximize their total profit. (NOTE: Profit = Revenue Total Cost)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Finance questions