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Chase Manhattan Bank
The workload in many areas of bank operations has the characteristics of a nonuniform distribution with respect to time of day. For example, at Chase Manhattan Bank, the number of domestic money transfer requests received from customers, if plotted against time of day, would appear to have the shape of an inverted-U curve with the peak reached around 1 P.M. For efficient use of the resources, the manpower available should, therefore, also vary correspondingly.
A variable capacity can effectively be achieved by employing part-time personnel. Since part-timers are not entitled to all fringe benefits, they are often more economical than full-time employees. However, other considerations may limit the extent to which part-time people can be hired in a given operating department. The problem is to find an optimum workforce schedule that would meet manpower requirements at any given time and also be economical.
Some of the factors affecting personnel assignments can be listed
In addition, the following costs are pertinent.
The personnel hours required, by hour of day, are given in Table 1. The bank's goal is to achieve the minimum possible personnel cost subject to meeting or exceeding the hourly workforce requirements, as well as the constraints on the workers listed earlier.
|Time Period||Number of Persons Required|
|9 - 10 A.M.||14|
|10 - 11||25|
|11 - 12||26|
|12 - 1 P.M.||38|
|1 - 2||55|
|2 - 3||60|
|3 - 4||51|
|4 - 5||29|
|5 - 6||14|
|6 - 7||9|
1. What is the minimum-cost schedule for the bank?
2. What are the limitations of the model used to answer the above question?
3. Costs might be reduced by relaxing the constraint that no more than 40 percent of the day's requirement by met by part-timers. Would changing the 40 percent to a higher value significantly reduce costs?