1. 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. The company has 40 computer workstations for operators. A permanent operator can process 16 claims per day, whereas a temporary operator can process 12 per day. On average, the company processes at least 450 claims each day. A permanent operator generates about 0.5 errors per day, whereas a temporary operator generates about 1.4 errors per day. The company wants to limit claims with error 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 to minimize costs.
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