An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 8989 customers for this flight segment in three years, what capacity requirement should be planned? Assume that management deems that a capacity cushion of 2525 percent is appropriate.

The needed capacity requirement is customers per day.

119 customers per day

Explanation:

The computation of the needed capacity requirement is shown below:

But before that first we have to determine the utilization rate which is

As we know that

Cushion rate = 100% - average utilization rate

25% = 100% - average utilization rate

So, the average utilization rate is 75%

Now the needed capacity requirement is

Utilization rate = Average output rate ÷ Maximum capacity × 100

75% = 89 ÷ Maximum capacity × 100

So, the maximum capacity is 119 customers per day

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