Chase Manhattan Case Study Bright Botchway, Miraya Flores and Waverly Massenburg American Public University BUSN 603: Quantitative Analysis Dr. Chander Sekar September 20, 2020 This study source was downloaded by 100000812012210 from CourseHero.com on 11-19-2022 13:06:27 GMT -06:00 https://www.coursehero.com/file/114425600/Chase-Manhattan-Case-Studydocx/ Minimum-Cost Schedule The total minimum personnel cost is $3,568.14. The objective function is to minimize total daily personnel cost. This can be defined as: Full-time employees = ($10.11) * (8) = $80.88 F Overtime = $8.08 Part-time employees = ($7.82) * (4) = $31.28 P Minimize cost = $80.88 F + $88.96 F1 + 97.04 F2 + $31.28 (P1+P2+P3+P4+P5+P6+P7) The decision variables for this problem are broken down into employee work time categories below are the following variables were considered. 1. The total number of Full-time employees is equal to F. The full-time personnel work from 9 am to 5pm. If they work between 5 pm to 7 pm, it will be counted as over-time. 2. The part time and over time employees are shown below to meet the required workforce in different specified hours. Part time cannot start after 3 pm, because they have to work for at least 4 hours and the last shift is at 7 pm. 3. The part-time employee who leave work their work day at the end of hour. Everyone leaves at 7 pm. A: Full-time (F) employees F Full time employees F1 Full time employees working overtime from 5 – 6 pm F2 Full time employees working overtime from 6 – 7 pm B. Part-time (P) employees who begin their work day at the hour P1 Part-time employees starting at 9 am P2 Part-time employees starting at 10 am P3 Part-time employees starting at 11 am P4 Part-time employees starting at 12 pm P5 Part-time employees starting at 1 pm P6 Part-time employees starting at 2 pm P7 Part-time employees starting at 3 pm This study source was downloaded by 100000812012210 from CourseHero.com on 11-19-2022 13:06:27 GMT -06:00 https://www.coursehero.com/file/114425600/Chase-Manhattan-Case-Studydocx/ C. Part-time (Q) employees who end their work day at the hour Q4 Part-time employees ending at 1 pm Q5 Part-time employees ending at 2 pm Q6 Part-time employees ending at 3 pm Q7 Part-time employees ending at 4 pm Q8 Part-time employees ending at 5 pm Q9 Part-time employees ending at 6 pm Limitations of the Model Used The limitations of the model used is that full time employees are only allowed to have 35 hours of work and is not allowed to have more than 5 hours of overtime per week. And part-time employees are limited to a maximum of 40% of the total daily required hours. This model is not allowing different loading for different days in a week and also doesn’t provide flexible timing to employees to work on a unique schedule. Constraints: Constraints 1-10 are the workforce requirements: * = 50% of the full-time employees go to lunch between 11 am and noon, and the remaining 50% go between noon and 1 pm. ** = Part-time employees start to leave work (deducted) *** = Full-time employees working overtime after 5 pm (added) Constraint 11 to meet the 40% condition of total number of personnel (40% of 321) = 128.4 Constraint 12 are number of overtime hours Constraints 13-21 are based on conditions for part-time employees ^ = Part-time employees must work at least 4 hours so those who leave at 1 pm cannot start at 9 am. Number of those who leave at 1 pm has to be smaller than the number of employees who start at 9 am. Constraint 22 is for employees leaving at the same time 7 pm. Table This study source was downloaded by 100000812012210 from CourseHero.com on 11-19-2022 13:06:27 GMT -06:00 https://www.coursehero.com/file/114425600/Chase-Manhattan-Case-Studydocx/ Constraint s Time Period Equations 1 9 – 10 am F + P1 > = 14 2 10 – 11 F + P1 + P2 > = 25 3 11 – 12 * 0.5F + P1 + P2 > = 26 4 12 – 1 pm * 0.5F + P1 + P2 + P3 + P4 > = 38 5 1 - 2 ** F + P1 + P2 + P3 + P4 + P5 – Q4 > = 55 6 2–3 F + P1 + P2 + P3 + P4 + P5 + P6 – Q4 – Q5 > = 60 7 3–4 F + P1 + P2 + P3 + P4 + P5 + P6 + P7– Q4 – Q5 – Q6 > = 51 8 4–5 F + P1 + P2 + P3 + P4 + P5 + P6 + P7– Q4 – Q5 – Q6 – Q7 > = 29 9 5 – 6 *** F + P1 + P2 + P3 + P4 + P5 + P6 + P7– Q4 – Q5 – Q6 – Q7 – Q8 > = 14 10 6–7 F + P1 + P2 + P3 + P4 + P5 + P6 + P7– Q4 – Q5 – Q6 – Q7 – Q8 – Q9 > = 9 11 40% 4P1 + 5P2 + 6P3 + 7P4 + 8P5 +9P6 + 10P7 – Q4 – 2Q5 – 3Q6 – 4Q7 – 5Q8 – 6Q9 .40 * 321 12 OT F1 + F2 <= F 13 1 pm < 9 am ^ Q4 <= P1 14 2 pm < 10 am Q5 <= P1 + P2 15 3 pm < 11 am Q6 <= P1 + P2 + P3 16 4 pm < 12 pm Q7 <= P1 + P2 + P3 + P4 17 5 pm < 1 pm Q8 <= P1 + P2 + P3 + P4 + P5 18 6 pm < 2 pm Q9 <= P1 + P2 + P3 + P4 + P5 + P6 19 Q4 + Q5 + Q6 + Q7 < = P1 20 Q4 + Q5 + Q6 + Q7 + Q8 < = P1 + P2 21 Q4 + Q5 + Q6 + Q7 + Q8 + Q9 < = P1 + P2 + P3 22 All end at 7 P1 + P2 + P3 + P4 + P5 + P6 + P7 = Q4 + Q5 + Q6 + Q7 This study source was downloaded by 100000812012210 from CourseHero.com on 11-19-2022 13:06:27 GMT -06:00 https://www.coursehero.com/file/114425600/Chase-Manhattan-Case-Studydocx/ Number of Personne l pm + Q8 + Q9 Increasing the relaxing Constraints When considering the constraints at 40% of the total daily required hours, the minimum cost schedule per day is $3,568.14. If that constraint were to be increased to 50%, the total cost dropped to $2,323.2. The bank would save $1,244.94 costs. This study source was downloaded by 100000812012210 from CourseHero.com on 11-19-2022 13:06:27 GMT -06:00 https://www.coursehero.com/file/114425600/Chase-Manhattan-Case-Studydocx/ Please note you need to attach the Excel spreadsheet to support the results. Limitations: This study source was downloaded by 100000812012210 from CourseHero.com on 11-19-2022 13:06:27 GMT -06:00 https://www.coursehero.com/file/114425600/Chase-Manhattan-Case-Studydocx/ The same staffing would be used every day. In reality, one would expect different patterns to present themselves on different days. For example, Fridays are usually much busier than other days. In addition, the person-hours required for each hour of the day are assumed to be deterministic. In a real situation, wide fluctuations will be experience in a stochastic manner. Do you agree? Please make sure your turnitin report score is less than 25%. This study source was downloaded by 100000812012210 from CourseHero.com on 11-19-2022 13:06:27 GMT -06:00 https://www.coursehero.com/file/114425600/Chase-Manhattan-Case-Studydocx/ Powered by TCPDF (www.tcpdf.org)
