AdminaStar processes Medicare claims. At the beginning of month 1 they have a backlog of 40,000 difficult

Question:

AdminaStar processes Medicare claims. At the beginning of month 1 they have a backlog of 40,000 difficult claims and 60,000 easy claims. The predicted claim volume for months 1 through 8 is listed in the file P04_85.xlsx. At the beginning of month 1, AdminaStar has 70 experienced claim processors. Each month it can hire up to 10 trainees. At the end of each month, 5% of experienced employees quit, and 20% of trainees are fired. Each worker is available for 160 hours per month. The number of minutes needed by each worker to process each type of claim is listed in this same file. AdminaStar wants ending inventory for months 2 through 7 to be no greater than 50,000 of each type of claim. All claims must be processed by the end of month 8. What is the minimum number of trainees that need to be hired during months 1 to 8? (Trainees must be integers. Experienced workers will probably end up being fractional. You have two options. First, you can ignore the fractional values. Second, you can use the ROUND function to round them to the nearest integers. However, this makes the model nonlinear, so you won’t be able to use Solver’s Simplex LP method. Try this second option.)

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

Question Posted: