JCG GLOBAL AIR SERVICES
Case Analysis
Submitted by:
ST Vigneshwaran 1811128
Nisha Sharma 1811131
Kumar Shivam 1811132
Bizza Srilatha 1811137
Ishaat Zahidi 1811143
Ramakant 1811145
EXECUTIVE SUMMARY
JCG global air services (AS) catered to the needs of transportation of JCG company
headquarters, by operating four aircrafts. The company owned & operated 2 Cessna citation X
aircraft (CE 750) & GV aircraft. The HQ, located at Moline housed around 2400 employees, who
regularly travelled to company factories, marketing facilities & customer locations across the
globe.
Sam Bursk, the pilot/manager of this large corporate aviation department, has taken up the
challenging job of preparing the fuel consumption plan for an upcoming four leg trip from
Moline to Boston, New York City area; Dallas and back.
The job is demanding as he has to consider many decision variables that include the amount of
fuel to be purchased in accordance with the amount for ramp fee charged at each airport.
Simple linear programming is used to optimize the fuel buying s.t the different constraints
which are given below.
Gulfstream GV
Decision Variables:
Let Xi be the amount of fuel (pounds) be purchased at airport i.
X1: Amount of fuel to be purchased at KMLI.
X2: Amount of fuel to be purchased at KBOS.
X3: Amount of fuel to be purchased at KTEB.
X4: Amount of fuel to be purchased at KDAL.
X5: Amount of fuel to be purchased at KMLI.
Let Yi be binary decision variable for waving of the fees or not where, at a particular airport
1: Fee waved
0: Otherwise
Y1: Binary Variable indicating if ramp fee has been waved or not at KBOS
Y2: Binary Variable indicating if ramp fee has waved or not at KTEB
Y3: Binary Variable indicating if ramp fee waved or not at KDA
Objective Function:
Minimize total cost of travel by the aircraft.
Z=(3.97X1+8.35X2+7.47X3+6.01X4+3.97X5)/6.7+(800Y1+450Y2+400Y3)
Constraints s.t:
Capacity of tank:
KMLI: 7000+X1<=41300
KBOS: 7000+X1-6968+X2 <= 41300
KTEB: 7000+X1-6968+X2-2903+X3 <=41300
KDAL: 7000+X1-6968+X2-2903+X3-7694+X4<=41300
KMLI: 7000+X1-6968+X2-2903+X3-7694+X4-4500<=41300
Ramp Fee waiver:
KBOS: 500*6.7*(1-Y1) <=X2
KTEB: 300*6.7*(1-Y2) <=X3
KDAL: 350*6.7*(1-Y3) <=X4
Minimum arrival fuel:
KBOS: 48800 + X1-4800>= 2400
KTEB: 48800+X1-6968+X2-2903>= 2400
KDAL: 48800 +X1-6968+X2-2903+X3-7694>= 2400
KMLI: 48800+ X1-6968+X2-2903+X3-7694+X4-4500>=2400
Ramp weight:
At KMLI: 48800+7000+X1+2*200<=90900
At KBOS: 48800+7000+X1-6968+X2+4*200<=90900
At KTEB: 48800+7000+X1-6968+X2-2903+X3+8*200<=90900
At KDAL: 48800+7000+X1-6968+X2-2903+X3-7694+X4+8*200<=90900
Landing weight:
KBOS: 22200+7000+X1-4800+2*200<=75300
KTEB: 22200+7000+X1-4800+X2-2000+4*200<=75300
KDAL: 22200+7000+X1-4800+X2-2000+X3-5300+8*200<=75300
KMLI: 22200+7000+X1-4800+X2-2000+X3-5300+X4-3100+8*200<=75300
Integer and Non-negativity:
X1, X2, X3, X4, X5, Y1, Y2, Y3 are non-negative and integers.
Excel snapshot
CE750
Decision Variables:
Let Xi be the amount of fuel (pounds) be purchased at airport i.
X1: Amount of fuel to be purchased at KMLI.
X2: Amount of fuel to be purchased at KBOS.
X3: Amount of fuel to be purchased at KTEB.
X4: Amount of fuel to be purchased at KDAL.
X5: Amount of fuel to be purchased at KMLI.
Let Yi be binary decision variable for waving of the fees or not where, at particular airport
1: Fee waved
0: Otherwise
Y1: Binary Variable indicating if ramp fee has been waved or not at KBOS
Y2: Binary Variable indicating if ramp fee has waved or not at KTEB
Y3: Binary Variable indicating if ramp fee waved or not at KDA
Objective Function:
Minimize total cost of travel by the aircraft.
Min, Z= (3.97X1+8.35X2+7.47X3+6.01X4+3.97X5)/6.7+(800Y1+450Y2+400Y3)
Constraints s.t:
Capacity of tank:
KMLI: 7000+X1<=13000
KBOS: 7000+X1-4800+X2 <= 13000
KTEB: 7000+X1-4800+X2-2000+X3 <=13000
KDAL: 7000+X1-4800+X2-2000+X3-5300+X4<=13000
KMLI: 7000+X1-4800+X2-2000+X3-5300+X4-3100<=13000
Ramp Fee waiver:
At KBOS: 500*6.7*(1-Y1) <=X2
At KTEB: 300*6.7*(1-Y2) <=X3
At KDAL: 350*6.7*(1-Y3) <=X4
Minimum arrival fuel:
KBOS: 7000 + X1-4800>= 2400
KTEB: 7000+X1-4800+X2-2000>= 2400
KDAL: 7000 +X1-4800+X2-2000+X3-5300>= 2400
KMLI: 7000+ X1-4800+X2-2000+X3-5300+X4-3100>=2400
Ramp weight:
KMLI: 22200+7000+X1+2*200<=36400
KBOS: 22200+7000+X1-4800+X2+4*200<=36400
KTEB: 22200+7000+X1-4800+X2-2800+X3+8*200<=36400
KDAL: 22200+7000+X1-4800+X2-2800+X3-5300+X4+8*200<=36400
Landing weight:
KBOS: 22200+7000+X1-4800+2*200<=31800
KTEB: 22200+7000+X1-4800+X2-2000+4*200<=31800
KDAL: 22200+7000+X1-4800+X2-2000+X3-5300+8*200<=31800
KMLI: 22200+7000+X1-4800+X2-2000+X3-5300+X4-3100+8*200<=31800
Integer:
X1, X2, X3, X4, X5,Y1, Y2, Y3 are integers.
Excel snap
Q1. Consider the “no tankering” option, where just enough fuel is loaded at each stop to
land at the next, with exactly 2400 lbs of fuel as required. What is the fuel plan for JCG’s
upcoming four-leg trip with this option?
Fuel plan with ‘no tankering’ option
Where,
X1: Amount of fuel to be purchased at KMLI.
X2: Amount of fuel to be purchased at KBOS.
X3: Amount of fuel to be purchased at KTEB.
X4: Amount of fuel to be purchased at KDAL.
X5: Amount of fuel to be purchased at KMLI after Journey
X1 X2 X3 X4 X5
Fuel to be bought 200 2000 5300 3100 4600
Fuel price ($/pound) 0.59 1.25 1.11 0.90 0.59
Ramp fee 800 450 400
Minimum pounds to waive 3350 2010 2345
ramp fee
Ramp fee waived (Y or N) No Yes Yes
Cost of buying fuel in 118 2500+800=3300 5883 2790 2714 Total = 14805
dollars
X1 = 200
Fuel already in jet = 7000 pounds.
Fuel burnt to fly from KMLI to KBOS = 4800 pounds
Minimum fuel while landing = 2400 pounds
Total fuel requirement from KMLI to KBOS = 7200 pounds
Fuel to be bought at KMLI = 7200 – 7000 = 200 pounds
Cost of buying fuel at KMLI = 200*0.59 = $118
X2 = 2000
Minimum Fuel while landing (already in jet) = 2400 pounds
Fuel burnt to fly from KBOS to KTEB = 2000 pounds
Total fuel requirement from KBOS to KTEB = 4400 pounds
Fuel to be bought at KBOS = 4400 – 2400 = 2000 pounds
Cost of buying fuel at KBOS = 2000*1.25 = $2500
Ramp fee = $800 (as minimum fuel to be bought to waive ramp fee is 3350 pounds)
Total cost = 2500+800 = $3300
X3 = 5300
Fuel already in jet = 2400 pounds.
Fuel burnt to fly from KTEB to KDAL = 5300 pounds
Total fuel requirement from KTEB to KDAL = 7700 pounds
Fuel to be bought at KTEB = 7700 – 2400 = 5300 pounds
Cost of buying fuel at KTEB = 5300*1.11 = $5883
(Ramp fee waived)
X4 = 3100
Fuel already in jet = 2400 pounds.
Fuel burnt to fly from KDAL to KMLI = 3100 pounds
Total fuel requirement from KDAL to KMLI = 5500 pounds
Fuel to be bought at KDAL = 5500 – 2400 = 3100 pounds
Cost of buying fuel at KDAL = 3100*0.90 = $2790
(ramp fee waived)
X5 = 4600
Fuel already in jet = 2400 pounds.
Fuel to be available in jet for next trip = 7000 pounds
Fuel to be bought at KMLI = 7000 – 2400 = 4600 pounds
Cost of buying fuel at KMLI = 4600*0.59 = $2714
Total cost = sum of costs at X1, X2, X3, X4, X5 = 118+3300+5883+2790+2714 = $14805
Q2.
Excel snapshot:
Constructing the Formula
X1 X2 X3 X4
KMLI KBOS KTEB KDAL
Fuel to be bought 6000 0 2010 2590
Price of fuel ($/gallon) 3.97 8.35 7.47 6.01
Ramp Fee Waiver Binary
Variable Defining
KBOS 1 800 Y1
KTEB 0 450 Y2
KDAL 0 400 Y3
Objective Function
Minimize 11645.16418
Constraints
Relation between X and Y –
0 0
2010 2010
2345 2590
Fuel Tank constraints –
13000 13000
8200 13000
8210 13000
5500 13000
7000 13000
Minimum Fuel Constraints –
8200 2400
6200 2400
2910 2400
2400 2400
Minimum Fuel on arrival at
KMLI -
7000 7000
Maximum Ramp Weight -
35600 36400
31200 36400
32010 36400
29300 36400
Maximum Landing weight -
30800 31800
29200 31800
26710 31800
26200 31800
