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A&B Coaches of Blackpool plan their capacity in terms of ‘coach-days’. They classify theirbusiness as either ‘full day’, which are long distance journeys, or ‘half day’ which areshorter runs. Forecasts show expected annual demands for the next two years to average400,000 full-day passengers and 750,000 half-day passengers.A&B have 61 coaches, each with an effective capacity of 40 passengers a day for 300days a year. Breakdowns and other unexpected problems reduce efficiency to 90%. Theyemploy 86 drivers who work an average of 220 days a year, but illness and other absencesreduce their efficiency to 85%.If there is a shortage of coaches the company can buy extra ones for £110,000 or hirethem for £100 a day. If there is a shortage of drivers they can recruit extra ones at a costof £20,000 a year, or hire them from an agency for £110 a day.How can the company approach its tactical planning?
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