Management of High Tech Services (HTS) would like to develop a model that will help allocate their technician’s 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
Management of High Tech Services (HTS) would like to develop a model that will help allocate their technician’s 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 only generates an average of $8 per hour. To ensure that new customer contracts are being maintained, the technician time spent on new customer contracts must be at least 60% of the time spent on regular customer contracts. Given these 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 contracted during the two-week period will be maximized. Technicians require an average of 50 minutes for each regular customer contract and 1 hour for each new customer contract.
a. Develop a linear programming model for the problem.
b. Find the optimal solution via Excel.
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