Reference no: EM131721541

Universal Claims Processors 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 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. 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.  

1. Formulate a linear programming model for this problem.

List the objective function (minimize or maximize) and all model constraints.

2. Solve this model graphically.

Identify the following: each constraint line, feasible solution area, x1, x2 and Z for each point, and clearly identify the optimal solution. Use graph paper

3. Solve problem using MS Excel’s Solver

4. Show the work in Excel worksheet and graph.

PLEASE SHOW WORK AS REQUESTED.