Question: Problem 1: (10 Points)Universal Claims Processors processes insurance claims for large national insurance companies.Most claim processing is done by a large pool of computer operators,

Problem 1: (10 Points)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 $55 per day. The company wants to determine the number of permanent and temporary operators to hire in order to minimize costs.

(a) Write down the objective function of the linear programming model for this problem.

(b) Write down the constraints of the linear programming model for this problem.

Problem 2: (10 Points)

For the following Linear Programming model;

Minimize Z = 4x1 + 3x2

subject to

8x1 + 6x2 48

x1 + 2x2 12

x1, x2 0

Write down the Linear Programming standard form by subtracting surplus variables (3 Points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!