Revenue Analyst
Latam Airlines Group

Santiago, Chile    Job

Challenge Brief

An airline is considering expanding the company by buying additional aircraft during this year. One of the main decisions is whether to buy narrow or wide body aircraft to use in the expansion.How many aircraft of each type should be bought in order to maximize annual profit? Consider the following information :

1 Annual Profit:
Narrow Body: $1 million
Wide Body: $5 million

2 Purchase Cost:
Narrow Body: $ 5 million
Wide Body: $50 million

3 Maximum Purchase Quantity:
Narrow Body: 4 units
Wide Body: Unlimited

What should the applicant resolve?

How many aircraft of each type should be bought in order to maximize annual profit?

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