The bus of company A has planned their capacity in terms of ‘bus-days’. Forecasts show expected annual demands for the next year to average 400,000 full-day passengers and 840,000 half-day passengers. The company has 61 buses, each with an effective capacity of 40 passengers a day for 300 days a year. Breakdowns and other unexpected problems reduce efficiency to 90%. They employ 86 drivers who work an average of 220 days a year, but illness and other absences reduce their efficiency to 85%. If there is a shortage of buses the company can buy extra ones for $110,000 or hire them for $100 a day. If there is a shortage of drivers they can recruit extra ones at a cost of $20,000 a year, or hire them from an agency for $110 a day. How can the company approach its tactical planning? Please recommend company A the best plan and explain in detail the reasons for the selection
The bus of company A has planned their capacity in terms of ‘bus-days’.
How can the company approach its tactical planning? Please recommend company A the best plan and explain in detail the reasons for the selection
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