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Asgn_2 Universal Claims Processors processes insurance claims for large national insurance companies. Most claim processing is done by a large pool of computer operations, some
Asgn_2 Universal Claims Processors processes insurance claims for large national insurance companies. Most claim processing is done by a large pool of computer operations, 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. No workstation should be idle (all workstations should be used]. 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. Q1. Formulate a linear programming model for this problem. Decision variables (2 point) Objective function (1 point) Constraints (3 points) Q2. Solve this model by using graphical analysis. Drawing constraints (3 points) Speci/ing feasible region (2 point) Specifying optimal solution (1 point) Q3. Find the effect on the optimal solution of changing the daily pay for a permanent claim processor from $64 to $54. (2 points) Q4. Find the effect of changing the daily pay for a temporary claim processor from $42 to $36. (2 points) Q5. What would be the effect on the optimal solution if Universal Claims Processors decided not to try to limit the number of defective claims each day? (2 points) Q6. Find the effect on the optimal solution if the minimum number of claims the firm processes each day increases from 450 to at least 650. (2 points)
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