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Kingfisher airlines


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Kingfisher airlines

  1. 1. NehaNimbekar<br />R750209011<br />MBA(ISM)<br />Linear Programming<br />
  2. 2. Kingfisher Airlines<br />Earlier Kingfisher Airlines was a small company that uses small planes for short flights.<br />The company was considering to expand its operations.<br />Kingfisher has two choices:<br />Buy more small planes (SP) and continue with short flights<br />Buy only large planes (LP) and only expand into larger markets with longer flights<br />Expand by purchasing some small and some large planes<br />
  3. 3. Kingfisher Airlines Cont.<br />Question: How many large and small planes should be purchased to maximize total net annual profit?<br />
  4. 4. Kingfisher Airlines<br />
  5. 5. Mathematical Model for Kingfisher<br />
  6. 6. Graphical Method for Linear Programming<br />
  7. 7. Divisibility Assumption of LP<br />This assumption says that the decision variables in a LP model are allowed to have any values that satisfy the functional and non-negativity constraints. <br />This implies that the decision variables are not restricted to integer values. <br />Note: Implicitly in Kingfisher’s problem, it cannot purchase a fraction of a plane which implies this assumption is not met.<br />
  8. 8. New Mathematical Model for Kingfisher<br />
  9. 9. The Graphical Solution Method For Integer Programming<br />Step 1: Graph the feasible region<br />Step 2: Determine the slope of the objective function line<br />Step 3: Moving the objective function line through this feasible region in the direction of improving values of the objective function.<br />Step 4: Stop at the last instant the the objective function line passes through an integer point that lies within this feasible region.<br />This integer point is the optimal solution.<br />
  10. 10. Graphical Method for Integer Programming<br />
  11. 11. Thank You<br />