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 O'Connel Airlines is considering air service from its hub of operations in Cicely Alaska, to Rome, Wisconsin, and Seattle, Washington

Accounting Feb 18, 2021

 O'Connel Airlines is considering air service from its hub of operations in Cicely Alaska, to Rome, Wisconsin, and Seattle, Washington. O'Connel has one gate at the Cicely Airport, which operates 12 hours per day. Each flight requires 1 hour of gate time. Each flight to Rome consumes 15 hours of pilot crew time and is expected to produce a profit of $2,500. Serving Seattle uses 10 hours of pilot crew time per flight and will result in a profit of $2,000 per flight. Pilot crew labor is limited to 150 hours per day. The market for service to Rome is limited to nine flights per day

A. Use the graphic method to maximize profits .

B. Identify slack and surplus constraints, if any .

Expert Solution

1) A) LP model and solution using graphical method is following:

Optimal solution:

Flights to be scheduled to Rome (X1) = 6

Flights to be scheduled to Seattle (X2) = 6

Total profit per day = $ 27000

B) There is a slack of 3 in constraint 3 (Maximum flights to Rome)

PFA

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