2012-win-math540HW Set6

# 2012-win-math540HW Set6 - 1 Homework Set 6 Chapter 3 Math...

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1 Homework Set 6 Chapter 3 Math 540 Quantitative Methods 1 Claims Processing . You work for a company that processes insurance claims. Most claim processing is done by a large pool of computer operators. Some are permanent and some are temporary. A permanent operator can process 16 claims per day. A temporary operator can process 12 per day. On average, the company must process 450 claims per day. The company has 40 computer workstations. A permanent operator generates about .5 claims 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. permanent operator is paid \$64 per day and a temporary operator is paid \$42 per day. You need to determine the number of operators. First you outline the Linear programming problem as follows: Min 64P + 42T S.T. 16P + 12T >= 450 P + T <= 40 .5P + 1.4 T <= 25 P , T >= 0 You assembled the problem and processed in Excel. Your outputs are below: Employee Type Permanent Temporary Cost per unit 64 42 Resources Available Usage Remaining Production req -16 -12 -450 -450 0.00 Computer work stations 1 1 40 30.792 9.21 Error rate 0.5 1.4 25 25 0.00 Answer 20.12 10.67 Z Value 1735.98 Quantitative Methods 3/2/2012 Math 540

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2 You now must answer some questions about the problem. a) Is this a max or min problem? b) How many permanent and how many temporary employees are needed?
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## This note was uploaded on 03/02/2012 for the course MANAGEMENT 540 taught by Professor Dr.smith during the Spring '12 term at University of Phoenix.

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2012-win-math540HW Set6 - 1 Homework Set 6 Chapter 3 Math...

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