An airline company must plan its fleet capacity and its long-term schedule of ai

Question

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 89 89 customers for this flight segment in three years, what capacity requirement should be planned? Assume that management deems that a capacity cushion of 20 20 percent is appropriate.

The needed capacity requirement is ____ customers per day. (Enter your response rounded up to the next whole number.)

Explanation / Answer

Answer : 111 customers per day

Explanation:

Given, Average number of customers per day = 70

Utilization rate of the equipment assigned to the flight segment= 65%

Capacity cushion, C= 20 percent

Demand expected to increase in three years, D = 89 customers per day

Hence, the number of customers management needs to plan in three years = Demand/ (1- C/100)

                                                                                      = 89 / (1-0.2)

                                                                                       = 89/0.8 = 111.25

When we round off the answer to next whole number,

The needed capacity requirement = 111 customers per day.

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