An Insurance Claims Processing Center Has Six Work Centers, Any

question 55

Essay

An insurance claims processing center has six work centers, any of which can be placed into any of six physical departmental locations. Call the centers 1, 2, 3, 4, 5, and 6, and the departments A, B, C, D, E, and F. The current set of assignments is A-3, B-1, C-6, D-2, E-4, and F-5.
The (symmetric) matrix of departmental distances, in meters is
$$\begin{array} { | c | c | c | c | c | c | c | } \hline & \mathbf { 1 } & \mathbf { 2 } & \mathbf { 3 } & \mathbf { 4 } & \mathbf { 5 } & \mathbf { 6 } \\\hline \mathbf { 1 } & - - & 5 & 30 & 20 & 15 & 20 \\\hline \mathbf { 2 } & & - - & 40 & 15 & 10 & 10 \\\hline \mathbf { 3 } & & & - - & 50 & 20 & 5 \\\hline \mathbf { 4 } & & & & - - & 10 & 35 \\\hline \mathbf { 5 } & & & & & - - & 5 \\\hline \mathbf { 6 } & & & & & & - - \\\hline\end{array}$$ The matrix of work flow (estimated trips per day) is among centers
$$\begin{array} { | l | c | c | c | c | c | c | } \hline & \boldsymbol { A } & \mathbf { B } & \mathbf { C } & \mathbf { D } & \mathbf { E } & \mathbf { F } \\\hline \mathrm { A } & - - & 15 & 20 & 0 & 30 & 0 \\\hline \mathrm { B } & 20 & - - & 50 & 0 & 160 & 10 \\\hline \mathrm { C } & 0 & 50 & - - & 30 & 0 & 30 \\\hline \mathrm { D } & 30 & 60 & 20 & - - & 70 & 0 \\\hline \mathrm { E } & 40 & 0 & 0 & 10 & - - & 60 \\\hline \mathrm { F } & 0 & 0 & 30 & 20 & 50 & - - \\\hline\end{array}$$ The firm estimates that each trip costs approximately $4.
a. What is the cost of the current assignment?
b. Use trial-and-error to find one improved assignment.
c. What is that assignment, and what is its cost?

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Definitions:

Breach of Warranty

A violation of the terms of a warranty or guarantee, often related to the quality, condition, or performance of goods or services.

Statute of Limitations

The maximum time period after an event within which legal proceedings may be initiated.

Contractual Remedies

Legal actions or methods available to a party of a contract to enforce or rectify terms if the other party breaches the agreement.

Breach Victims

Individuals or entities that have suffered harm or loss as a result of a breach of contract, duty, or law.