Number of permnent and temporary operators


Universal Claims processor processes insurance claims for large national insurance companies. Most claims processing is done by a large pool of computer operators, some who are permnent and some are temporary. A permnent operator can process 16 claims per day, whereas a temporary operator can process 12, per day, and on an average the company processes at least 450 claims each day. The company has 40 computer workstations. A permnent operator generates about 0.5 claim with errors each day, whereas a temporary operator generates 1.4 claim errors per day. The company wants to limit errors to 25 per day. A permnent operator is paid $64 per day, and a temporary operator is paid $42 per day. The company wants to determine the number of permnent and temporary operators to hire in order to minimize cost.

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Business Management: Number of permnent and temporary operators
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