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The Fly - Right Alrplane Company bullds small Jet alrplanes to sell to corporations for use by thelr executlves. To meet the needs of these
The FlyRight Alrplane Company bullds small Jet alrplanes to sell to corporations for use by thelr executlves. To meet the needs of
these executlives, the company's customers sometimes order a custom design of the alrplanes being purchased. When this occurs, a
substantlal startup cost is incurred to Inltiate the production of these alrplanes. FlyRight has recently recelved purchase requests from
three customers with short deadlines. However, because the company's production facilities already are almost completely tled up
filling previous orders, It will not be able to accept all three orders. Therefore, a decision now needs to be made on the number of
alrplanes the company will agree to produce If any for each of the three customers. The relevant data are given in the next table. The
first row gives the startup cost required to Inltlate the production of the alrplanes for each customer. Once production is under way,
the marginal net revenue which is the purchase price minus the marginal production cost from each alrplane produced is shown in
the second row. The third row gives the percentage of the avallable production capacity that would be used for each alrplane
produced. The last row Indicates the maximum number of alrplanes requested by each customer but less will be accepted
Click here for the Excel Data File
Formulate and solve a spreadsheet model with both Integer varlables and binary varlables for this problem.
a Determine how many alrplanes to produce for each customer If any to maximize the company's total profit.
Note: Leave no cells blank. Enter wherever requlred.
b Determine the total profit.
Note: Round your answer to decimal place.
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