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# Linear Programming Model (Formulation Only)

Universal Claims Processors processes 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.

A. Formulate a linear programming model for this (Excel not necessary).

#### Solution Preview

The formulation is:

Let x number of permanent operators and y number of temporary ...

#### Solution Summary

Objective Function defined and constraints laid down. Only formulation - No solution.

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