Optimization
Not what you're looking for?
A shipping company has the capacity to move 100 tons/day by air. The company charges $250/ton for air freight. Besides the weight constraint, the company can only move 50,000 ft3 or cargo per day because of limited volume of aircraft storage compartments. The following amounts of cargo are available for shipping each day:
Day Cargo Weight (tons) Volume (ft3/ton)
1 30 550
2 40 800
3 50 400
a) Determine how many tons of each cargo should be shipped by air each day in order to maximize revenue.
The company has the capability to reconfigure some of its older planes to
increase the size of the cargo areas. The modifications would cost $200,000 per plane and would add 2,000 ft3 per plane. The weight limits would stay the same.
b) Assuming that the planes fly 250 days per year and that the remaining lifetime of the older planes is around five years, would it be worthwhile to make the modifications?
c) To how many planes would it be worthwhile?
Please show all work.
Purchase this Solution
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
Recent Feedback
- "Your explanation to the answers were very helpful."
- "What does 1 and 0 means in the repair column?"
- "Went through all of the formulas, excellent work! This really helped me!"
- "try others as well please"
- "Thank you, this helped a lot. I was not sure how to plug in those numbers to a formula. This was a great help. Now I have to figure out how to explain cost of capital is used in net present value analysis, and how cost of capital is used in net present value analysis. This stuff gets confusing."
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Operations Management
This quiz tests a student's knowledge about Operations Management