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Capacity Management Problem

An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 84 customers for this flight segment in three years, what capacity requirement should be planned? Assume that managment deems that a capacity cushion of 25 percent is appropriate.

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This posting contains solution to following capacity management problem for an airline.