Reference no: EM132802069

Management of High Tech Services (HTS) would like to develop a model that will help al- locate their technicians' time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the two-week plan- ning period. To satisfy cash flow requirements, at least $800 in revenue (per technician) must be generated during the two-week period. Technician time for regular customers generates $25 per hour. However, technician time for new customers only generates an average of $8 per hour because in many cases a new customer contact does not provide billable services. To ensure that new customer contacts are being maintained, the technician time spent on new customer contacts must be at least 60% of the time spent on regular customer contacts. Given these revenue and policy requirements, HTS would like to determine how to allocate techni- cian time between regular customers and new customers so that the total number of customers contacted during the two-week period will be maximized. Technicians require an average of 50 minutes for each regular customer contact and 1 hour for each new customer contact.

-Develop a linear programming model that will enable HTS to allocate technician time between regular customers and new customers.

-Find the optimal solution.