Service calls to regular-contract customers and new customer

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Reference no: EM13843500

Managers of High Tech Services (HTS) would like to develop a model that will help allocate 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 planning 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 generates an average of only $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 new-customer contacts must be at least 60 percent of the time technicians spend on regular-customer contacts. Given these revenue and policy requirements, HTS would like to determine how to allocate technicians 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 determine how to allocate technicians time between regular customers and new customers.

Reference no: EM13843500

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