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I need to know how to formulate a Linear programming model for this question Universal Claims Processors process insurance

claims

for large national insurance companies. 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 claim a 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 $42.00 per day. The company wants to determine the number of permanent and temporary

operators to hire in order to minimize costs. I know this would be a Minimization Model Z=$64x1 + $42x2 Having trouble from here.

Let x permanent operators and y temporary operators be employed per day.


Minimize C = 64x + 42y
Subject to
16x + 12y ³ 450 [Claims constraint]
x + y ≤ 40 [Work stations constraint]
0.5x + 1.4y ≤ 25 [Errors constraint]
We take each inequality as an equation and draw its graph. We then identify the feasible region by shading the
appropriate side of each line. This results in the graph shown below:

Optimal Solution: The company must hire 20 permanent operators and 11 temporary operators.
Optimum cost will be 64(20) + 42(11) = $1742.

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