EBK OM
EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 2, Problem 4PA
Summary Introduction

Interpretation: Effect of schedule change of airlines

Concept Introduction: Operation management is a part of business administration in which goods and services are produced or redesigned with the highest level of efficiency to earn maximum profit.

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Answer to Problem 4PA

Productivity is increased by 14% due to the frequency and convenient timings of flight.

Explanation of Solution

Consider the following data:

     Number of flightsNumber of Passengers
    Month prior to schedule change168795
    Month after schedule change2515653

Effect of the schedule change can be determined by the following:

  1. Monthpriortoschedulechange= No.ofpassengers No.offlights
  2.    Monthpriortoschedulechange= 8795 16

    =549.6or550

  3. Monthafterschedulechange= 15653 25
  4.    =626.12or627

   Increment in no. of passengers per flight =( No. of passenger per  flight after schedule change )-( No. of passenger per flight month  prior to schedule change )

Increment in no. of passengers per flight =627550

Increment in no. of passengers per flight =77

   [ ( Incrementinno.ofpassengersperflight No.ofpassengersperflightMonthprior )×100 ]

   =[ ( 77 550 )×100 ] =14%

Hence, productivity is increased by 14% due to the frequency and convenient timings of flight.

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