1. Dallas Airline has a need for about 100 new flight attendants per month as replacements...

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1. Dallas Airline has a need for about 100 new flight attendants per month as replacements for those who leave. Trainees are put through a two-month school. The fixed cost of running one session of this school is $150,000. Any number of sessions can be run during the year but must be scheduled so that the airline always has enough flight attendants. The cost of having excess attendants is simply the salary that they receive, which is $15,000 per month. How many sessions of the school should Dallas Airline run each year, and how many flight attendants should be in each session? a. What is the optimal session size? [10 Points] b. What is the optimal number of sessions per year? [10 Points] c. What is the optimal time between two consecutive sessions? [10 Points] d. What is the minimum annual training cost and the minimum annual holding cost? [10 Points] e. We have implicitly assumed that Dallas Airline starts paying the salary of $15,000 per month only at the end of the two-month school. Such a practice drew significant complaints from the trainees. Dallas Airline decided to change its practice and pay the trainees during the training session as well. How would the new policy change Dallas Airline's class size? [10 Points] 1. Dallas Airline has a need for about 100 new flight attendants per month as replacements for those who leave. Trainees are put through a two-month school. The fixed cost of running one session of this school is $150,000. Any number of sessions can be run during the year but must be scheduled so that the airline always has enough flight attendants. The cost of having excess attendants is simply the salary that they receive, which is $15,000 per month. How many sessions of the school should Dallas Airline run each year, and how many flight attendants should be in each session? a. What is the optimal session size? [10 Points] b. What is the optimal number of sessions per year? [10 Points] c. What is the optimal time between two consecutive sessions? [10 Points] d. What is the minimum annual training cost and the minimum annual holding cost? [10 Points] e. We have implicitly assumed that Dallas Airline starts paying the salary of $15,000 per month only at the end of the two-month school. Such a practice drew significant complaints from the trainees. Dallas Airline decided to change its practice and pay the trainees during the training session as well. How would the new policy change Dallas Airline's class size? [10 Points]

Answer rating: 100% (QA)

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