Question
The accounting firm of Coopers & Andersen is conducting a benchmarking surveyto assess the satisfaction level of their clients versus clients served by competingaccounting firms.
The accounting firm of Coopers & Andersen is conducting a benchmarking surveyto assess the satisfaction level of their clients versus clients served by competingaccounting firms. The clients are divided into four groups:Group 1: Large clients of Coopers & AndersenGroup 2: Small clients of Coopers & AndersenGroup 3: Large clients of other accounting firmsGroup 4: Small clients of other accounting firmsA total of 4,000 companies are being surveyed either by telephone or via a two-wayweb cam interview.
The costs associated with surveying the different types of companies are summarized in the following table:Survey Costsgroup Telephone Web Cam1 $18 $402 $14 $353 $25 $604 $20 $45.
Coopers & Andersen wants the survey to carry out the survey in the least costlyway that meets the following conditions:
At least 10% but not more than 50% of the total companies surveyed shouldcome from each group.
At least 50% of the companies surveyed should be clients of Coopers & Andersen.
At least 25% of the surveys should be done via web cam.
At least 50% of the large clients of Coopers & Anderson who are surveyed shouldbe done via web cam.
A maximum of 40% of those surveyed may be small companies.
A maximum of 25% of the small companies surveyed should be done via webcam.
a. Formulate an LP model for this problem.
b. Create a spreadsheet model for this problem and solve it using Solver.
c. What is the optimal solution?
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