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Solve the previous formulated model (Universal Claims Processors problem) by using graphical analysis. The optimal solution to the model is

Solve the previous formulated model (Universal Claims Processors problem) by using graphical analysis. The optimal solution to the model is

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 98P
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Universal Claims Processors processes insurance claims for large national insurance companies. Most claim processing is done by a large pool of computer operators, some of whom are permanent and some of whom are temporary. A permanent operator can process 16 claims per day, whereas a temporary operator can process 12 per day, and on average the company processes at least 450 claims each day. The company has 40 computer workstations. A permanent operator generates about 0.5 claim with errors each day, whereas a temporary operator averages about 1.4 defective claims per day. The company wants to limit claims with errors to 25 per day. A permanent operator is paid $64 per day, and a temporary operator is paid $42 per day. The company wants to determine the number of permanent and temporary operators to hire in order to minimize costs. Formulate a linear programming model for this problem. Define x₁ as the number of permanent operators to hire, x2 as the number of temporary operators to hire, and Z as the total cost. Which of the following model formulations is correct?
Transcribed Image Text:Universal Claims Processors processes insurance claims for large national insurance companies. Most claim processing is done by a large pool of computer operators, some of whom are permanent and some of whom are temporary. A permanent operator can process 16 claims per day, whereas a temporary operator can process 12 per day, and on average the company processes at least 450 claims each day. The company has 40 computer workstations. A permanent operator generates about 0.5 claim with errors each day, whereas a temporary operator averages about 1.4 defective claims per day. The company wants to limit claims with errors to 25 per day. A permanent operator is paid $64 per day, and a temporary operator is paid $42 per day. The company wants to determine the number of permanent and temporary operators to hire in order to minimize costs. Formulate a linear programming model for this problem. Define x₁ as the number of permanent operators to hire, x2 as the number of temporary operators to hire, and Z as the total cost. Which of the following model formulations is correct?
Solve the previous formulated model (Universal Claims Processors problem) by using graphical analysis. The optimal solution to the model is (28.125, 0) (40, 0) (34.44, 5.56) (20.12, 10.67)
Transcribed Image Text:Solve the previous formulated model (Universal Claims Processors problem) by using graphical analysis. The optimal solution to the model is (28.125, 0) (40, 0) (34.44, 5.56) (20.12, 10.67)
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ISBN:
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