c. An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following:-i.ii.iii.the planned capacity requirement.the maximum number of customers the flight segment can accommodatethe efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.

Find the Calculation methods below: Capacity cushion = 100% - Average utilization rateUtilization =…

Answered: An airline company must plan its fleet…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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c. An airline company must plan its fleet capacity and long-term schedule of aircraft usage. For oneflight segment, the average number of customers per day is 70, which represents a 65 percentageutilization rate of the equipment assigned to the flight segment. If demand is expected toincrease to 84 customers for this flight segment in three years, and management requires acapacity cushion of 25 percent, calculate the following:-i. the planned capacity requirement.ii. the maximum number of customers the flight segment can accommodate.iii. the efficiency rate of the flight segment assuming that the current effective capacity of theflight segment is 93 customers.
A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows: Machine CostA $40,000B $30,000C $80,000Product forecasts and processing times on the machines are as follows: Processing Time per Unit (minutes) Product Annual Demand A B C 1 16000 3 4 2 2 12000 4 4 3 3 6000 5 6 4 4 30000 2 2 1 a.) Assume that machines operate 10 hours a day, 250 days a year. If we only consider purchasing costs, which machine would have the lowest total cost? b.) Assume machines operate 10 hours a day, 250 days a year. If we select machine A, how many machine A do we need? (Use common sense to decide the answer.)
In an eff ort to increase capacity in Work Center 111 forweek 13, Yankee Machine Shop has authorized overtime. Th ework center will be staff ed 12 hours per day for six days. Becauseof the additional stress on the three machines, it is expected thatthe utilization rate will drop to 85 percent. Th e effi ciency rate isexpected to fall to 80 percent.(a) Calculate the capacity available in Work Center 111 forweek 13.(b) Will this plan provide suffi cient capacity to completethe orders given in Problem 23? If not, what do yourecommend be done?
Ex 5 Fitzsimmons & Fitzsimmons (2008) compare 2 capacity management strategies. Part of their comparison is presented below: Capacity plan: Level Capacity Chase Demand Customer waiting Generally low Moderate High Long run Labour skill level Low Forecasting Short run a) Motivate why the forecasting horizon is longer for Level capacity plans. b) Which assumption is used to reach the conclusion that a level capacity plan has a shorter customer waiting time?
What is CAPACITY REQUIREMENTS FORECASTING?
Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. 1 2 3 4 5 86 90 Year Forecast demand Currently the manufacturer has seven machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units, year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity, Round your answers to the nearest whole number. Year 1 Additional machines needed 2 1 24 Extra capacity needed (units) C. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. 4 3 4 5 PE
1.A firm has 77 units of a product on hand. Forecasts of demand are 26 units per week. An MPS quantity of 90 units is planned to arrive in period 3. Customer orders are 29 for period 1, 27 for period 2, and 19 for period 3.What is the projected on-hand inventory at the end of period 3? (use excel to show formulas)
An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, theaverage number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to theflight segment. If demand is expected to increase to 84 cus-tomers for this flight segment in three years, what capacityrequirement should be planned? Assume that managementdeems that a capacity cushion of 25 percent is appropriate
1. A 32,000-seat baseball stadium is used 17 times for games, concerts, and graduation ceremonies. Each event averages five hours and assumes the stadium is full for each event. The stadium is available 365 days a year from 7 am to midnight. (Notice: the focus is stadium “seat” utilization). a. What is stadium (seat) utilization using Equation 7.1 (pg 146)? (Show your calculations) b. If in the above scenario, the utilization was 75% during the 17 events, but there were 2 additional events that garnered 100% utilization, would this be an increase or decrease in overall utilization from the result in “a”? (Show calculations) c. As an Operations Manager how would you improve utilization at the stadium? Provide at least three optional improvement plans with details. EQUATION 7.1 is : UTILIZATION (U) = Resources used / resources avaliable EQUATION 7.2 is: UTILIZATION (U) = Demand Rate / [Service Rate * Number of Servers]
Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year 1 2 3 4 5 Forecast Demand 114 129 131 134 133 Currently, the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 26 minutes to produce. a) What is the effective capacity of the factory? b) Given the five-year forecast, how much extra capacity is needed each year? c) Does the firm need to buy more machines? If so, how many? When? Solve manually
1. A washing machine manufacturer works on 8 hours shift in a year (assume 2021 calendar) excluding Saturday and Sunday. Demand estimates for the number of washing machine that could be sold next year are shown below: Demand (units) 2000 4000 5000 Processing Time (std time hrs) 3.0 5.0 6.0 (a) Assuming the firm produces on an expected value basis, what is the annual production capacity of one machine in standard hours? (b) What capacity is required to meet 170% percent of expected demand?
A manager has the option of purchasing one, two, or three machines. Fixed costs and potential volumes are as follows:Number ofMachinesTotal AnnualFixed CostsCorrespondingRange of Output1 $ 9,600 0 to 3002 15,000 301 to 6003 20,000 601 to 900Variable cost is $10 per unit, and revenue is $40 per unit.a. Determine the break-even point for each range.b. If projected annual demand is between 580 and 660 units, how many machines shouldthe manager purchase?

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