Question: Liability Avoided Insurance processes premium payments received using permanent and temporary operators working at computer terminals. It has 32 computer terminals and operators are scheduled for 8-hour shifts. A permanent operator can process an average of 220 premium payments per day with an error rate of 0.4 errors/day. A temp can process an average of 140 payments per day with an average error rate of 0.9 errors/day.

The company must process an average of 6,300 payments per day and wants to limit errors/day to 15 on average. A Permanent operator is paid salary and benefits of $120/day whereas a temp earns a salary of $75/day. How many permanent and temp operators should be hired in order to minimize salary costs. (14 pts)