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IELM_assignment_5

IELM_assignment_5 - IELM 202 Assignment#5 Due date 23...

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IELM 202, Assignment #5 Due date: 23 November 2005, Wednesday, 12:00 noon Question 1 (30 marks): The Fly-Right Airplane Company builds small jet airplanes to sell to corporations for the use of their executives. To meet the needs of here executives, the company’s customers sometimes order a custom design of the airplanes being purchased. When this occurs, a substantial start-up cost is incurred to initiate the production of these airplanes. Fly-Right has recently received purchase requests from three customers with short deadlines. However, because the company’s production facilities already are almost completely tried up filling previous orders, it will not be able to accept all three orders. Therefore, a decision now needs to be made on the number of airplanes the company will agree to produce (if any) for each of the three customers. The relevant data are given in the following table. The first row gives the start-up cost required to initiate the production of the airplanes for each customer. Once production is
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IELM_assignment_5 - IELM 202 Assignment#5 Due date 23...

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