Management of high tech services

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Reference no: EM131436473

Management of High Tech Services (HTS) would like to develop a model that will help allocate technician time between service calls to regular contract customers and new customers. A maximum of 80 hours of technician time is available over the 2-week planning period. In order to satisfy cash flow requirements, at least $800 in revenue (per technician) must be generated during the 2-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 time technicians spend on regular customer contacts. Given the above revenue and policy requirements, HTS would like to determine how to allocate technician time between regular customers and new customers so that the total number of customers contacted during the 2-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 determine how to allocate technician time between regular customers and new customers

Graph the feasible region

Solve the appropriate simultaneous linear equations to determine the values of x1 and x2 at each extreme point of the feasible region

Find the optimal solution

Reference no: EM131436473

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