# In Problem 26, what would be the effect on the optimal solution if Universal Claims Processors decided

## Question:

In Problem 26, what would be the effect on the optimal solution if Universal Claims Processors decided not to try to limit the number of defective claims each day?

**Data From Problem 26:**

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.

a. Formulate a linear programming model for this problem.

b. Solve this model by using graphical analysis.

## Step by Step Answer:

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