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Explain what you hope to accomplish with the decisions

Assignment Help Operation Management
Reference no: EM13889446

Question:

A rationale for each decision. Explain what you hope to accomplish or achieve with the decisions, and provide references to support the decisions.

Fares Decision

Fare per Mile     29 Cent

Fare Structure   Discount

Cabin/Food Service         No cabin/food service

Marketing Decision

Promotion Budget           $2,500

Advertising Budget         $2,500

In-fight Magazine            Yes

Current Salespersons     0

Salespersons Hired         1

Estimated Salesperson Cost S12,000

Cargo Marketing Budget               $0

Compensation Decision

Quality and Training Budget      $1000

Compensation Policy                   5% above prevailing wage + 20% of profits for all employees

Fleet Decision

Maintenance     Level 2: some additional cleaning and maintenance: Cost $2500 per aircraft per quarter.

Fuel Contract     50% purchased on open market and 50% on contract

Acquisitions        No acquisitions have been made.

Disposals             No aircraft disposals

Routes Decision

                          Aircraft                       Flts           Seat        Fare Sale

228 - 400 Miles  Beechcraft 1900                3              57           Regular Fare

23C - 340 Miles  Beechcraft 1900                3              57           Regular Fare

24D - 300 Miles  Beechcraft 1900                3              57           One-Month Sale

25E - 400 Miles  Beechcraft 1900                4              76           Tao-Month Sale

Corporate Decision

Social Performance Budget $1000

Social Responsibility Area  Environmental causes

Reference no: EM13889446

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