Question: Management of High Tech Services (HTS) would like to develop a model that will help allocate their technicians time between service calls to regular contract

Management of High Tech Services (HTS) would like to develop a model that will help allocate their technicians’ time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the twoweek planning period. To satisfy cash flow requirements, at least E800 in revenue (per technician) must be generated during the two-week period. Technician time for regular customers generates E25 per hour. However, technician time for new customers only generates an average of E8 per hour because in many cases a new customer contact does not provide billable services. To ensure that new customer contacts are being maintained, the technician time spent on new customer contacts must be at least 60 per cent of the time spent on regular customer contacts. Given these revenue and policy requirements, HTS would like to determine how to allocate technician time between regular customers and new customers so that the total number of customers contacted during the two-week period will be maximized. Technicians require an average of 50 minutes for each regular customer contact and one hour for each new customer contact.

a. Develop a linear programming model that will enable HTS to allocate technician time between regular customers and new customers.

b. Find the optimal solution.

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