Please develop a linear programming model for the problem. b. Find the optimal solution via Excel. (showing formulas and steps if possible)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section11.4: Marketing Models
Problem 30P: Seas Beginning sells clothing by mail order. An important question is when to strike a customer from...
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Big Lots Services (BLS) would like to develop a model that will help allocate their technician’s time between service calls to regular contract customers and new customers. A maximum of eighty hours of technician time is available over the two-week planning period. To satisfy cash flow requirements, at least eight hundred dollars in revenue (per technician) must be generated during the two-week period. Technician time for regular customers generates twenty-five dollars per hour. However, technician time for new customers only generates an average of eight dollars per hour. To ensure that new customer contracts are being maintained, the technician time spent on new customer contracts must be at least sixty percent of the time spent on regular customer contracts. Given these revenue and policy requirements, (BLS) would like to determine how to allocate technician time between regular customers and new customers so that the total number of customers contracted during the two week period will be maximized. Technicians require an average of fifty minutes for each regular customer contract and one hour for each new customer contract.

a. Please develop a linear programming model for the problem.

b. Find the optimal solution via Excel. (showing formulas and steps if possible)   

 

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