Question
A local insurance company processes claims. At the beginning of month 1 they have a backlog of 40,000 difficult claims and 60,000 easy claims. The
A local insurance company processes 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 spreadsheet Q3. At the beginning of month 1, the firm 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 the same spreadsheet. The firm 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? (Note: Trainees must be integers. Experienced workers will probably end up being fractional, which is fine. In addition, if a trainee who was hired at the beginning of a month is not fired by the end of the month, he/she will become an experienced worker for the next month). Please solve in excel using solver.
B C D E F G H 1 Processing claims 3 Volumes 4 Month 5 Difficult 6 Easy 47488 75020 57842 77015 40391 96601 55085 78767 5 60789 81739 6 7 6480964917 75154 83607 8 42465 88450 9 8 Minutes per claim for each type of worker Experienced Training 10 Difficult 6 10 11 Easy B C D E F G H 1 Processing claims 3 Volumes 4 Month 5 Difficult 6 Easy 47488 75020 57842 77015 40391 96601 55085 78767 5 60789 81739 6 7 6480964917 75154 83607 8 42465 88450 9 8 Minutes per claim for each type of worker Experienced Training 10 Difficult 6 10 11 EasyStep by Step Solution
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