Air Freight Transportation Problem

Summary

This project involves the shipping of cargo by air. Apart from the weight constraints, the company has limited volume of aircraft storage compartments. Full details are available on an average daily basis of three types of cargo in terms of weight (tons) and volume (ft³ / ton ). The amount of each type of cargo which should be shipped by air each day is found in order to maximize revenue ($). The problem is modelled using constrained optimization techniques and solved using Lagrange multipliers. The shadow prices are calculated for each constraint and the results are interpreted. An extension is considered which involves the company in reconfiguring some of its older planes to help increase the size of the cargo areas. In this way decisions can be made on whether or not to include alterations and to what extent. The numerical results are validated by solving as a linear programming problem using the computer software package LINDO and the mathematical software package MAPLE.