Question 4 (20 points): Tim Strauss is the Air Cargo Director at Hawaiian Airlines. He wrote the following business case to illustrate the outsourcing and inhouse ground operation decisions made by a cargo airline at an airport. On May 15', JAL Express will increase its scheduled ights to/from Misawa, Japan from 2 to 5 ights per day. Its current cargo volume is 4500 kilos per day. The 3 new ights provide the rst wide-body aircraft capacity for J AL Express into Misawa. The corporate marketing team has projected that the new ights will carry between 12,000 to 37,000 kilos of new cargo daily. The current average shipment weight is 75 kilos, and the newly arrived cargo shipments will be averaged to be 200 kilos per shipment. Agom Aviation is the cargo ground handler, and handles the current cargo shipments for JAL Express at $0.095 per kilo, and also receives $8.00 per shipment from the freight forwarders for documentation and customs processing. Based on the new ights and projected additional tonnage and shipments, Agom Aviation has proposed a rate of $0.085 per kilo for the new tonnage in addition to using the existing rate for current cargo volume. The document handling will remain at $8.00 per shipments paid by the freight forwarders. JAL Express' industrial engineers propose a new operating model for JAL Express to do in- house ground handling, and determine that it will cost JAL Express $3,800 per day to self- handle any amount of cargo shipments with the same service quality level as provided by Agom. If it chooses to do selfhandling operation, JAL Express will collect the same document fees as Agom from freight forwarders. Based on the information provided above, calculate the amount of new cargo shipments that will be needed to favor the inhouse ground operation decision as proposed by the industrial engineering team of JAL Express