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YThe FlyCan airline serves both regional and cross-country flights within Canada. FlyCan has been authorized by the board of directors to purchase new airplanes

  

YThe FlyCan airline serves both regional and cross-country flights within Canada. FlyCan has been authorized by the board of directors to purchase new airplanes to fly long-range, medium- range, and short-range routes. After lengthy negotiations with two of the major aircraft manufacturers, Boring and Airflus, FlyCan has decided to buy the B949 jumbo jets for its long-range service at $210 million cach. For medium-range flights, it has chosen the A656 aircraft at a cost of $143 million each. Finally, the company has selected the B343 short-range planes at a cost of $56 million cach. The board of directors has authorized a maximum commitment of $5 billion for these pur- chases. It is estimated that the net annual profit after subtracting capital recovery costs will be $3 800 00o for cach B949, $3 400 000 per A656, and $2 800 000 for each short-range B343 planc. FlyCan has an aggressive recruitment and training program that will ensure that enough trained light crews will be available to fly up to 30 new airplanes. If only B343s were being serviced, the maintenance facil- ities would be able to handle a total of 40 aircraft. Likewise, it could handle a total of 32 A656s or 24 B949s. FlyCan has determined it will need at least 20 aircraft in total, and no less than five of each type of aircraft. Management wishes to know how many planes of each type should be purchased in order to maximize profit. (a) Formulate the aircraft purchase problem as a linear program. (b) Solve using Excel. Problem 3-17 B949 A656 B343 Number of aircraft Net Profit Constraints: Budget Flight Crews Maintenance Min B949 Min A656 Min B343

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