Chase Manhattan Bank Case Study Assignment | Homework For You
Somehow 22 constraints based on the 16 conditions/variables have to be created from this? but we dont get how? Review, analyze, and complete the Chase Manhattan Bank Case Study below. 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 in New York, 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 around 1 P.M. For efficient use of resources, the personnel available should, therefore, vary correspondingly. A variable capacity can be achieved effectively by employing part-time personnel. Because part-timers are not entitled to all the fringe benefits, they are often more economical than full-time employees. Other considerations, however, may limit the extent to which part-time people can be hired in a given department. The problem is to find an optimum workforce schedule that would meet personnel requirements at any given time and also be economical. Some of the factors affecting personnel assignment are listed here: By corporate policy, part-time personnel hours are limited to a maximum of 40% of the day’s total requirement. Full-time employees work for 8 hours (1 hour for lunch included) per day. Thus, a full-timer’s productive time is 35 hours per week. Part-timers work for at least 4 hours per day but less than 8 hours and are not allowed a lunch break. Fifty percent of the full-timers go to lunch between 11 A.M. and noon, and the remaining 50% go between noon and 1 P.M. The shift starts at 9 A.M. and ends at 7 P.M. (i.e., overtime is limited to 2 hours). Any work left over at 7 P.M. is considered holdover for the next day.
A full-time employee is not allowed to work more than 5 hours overtime per week. He or she is paid at the normal rate for overtime hours—not at one-and-a-half times the normal rate applicable to hours in excess of 40 per week. Fringe benefits are not applied to overtime hours. In addition, the following costs are pertinent: 1. The average cost per full-time personnel hour (fringe benefits included) is $10.11. 2. The average cost per overtime personnel hour for full-timers (straight rate excluding fringe benefits) is $8.08. 3. The average cost per part-time personnel hour is $7.82. The personnel hours required, by hour of day, are given in the following Table. TABLE: Workforce Requirements 4–5 NUMBER OF PERSONNEL TIME PERIOD 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 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.
1. What is the minimum-cost schedule for the bank?
2. What are the limitations of the model used to answer question 1?
3. Costs might be reduced by relaxing the constraint that no more than 40% of the day’s requirement be met by part-timers.
Would changing the 40% to a higher value significantly reduce costs? Source: Adapted from Shyam L. Moondra. “An L. P. Model for Work Force Scheduling for Banks,” Journal of Bank Research (Winter 1976): 299–301. Label your completed file CS1 – Your Team’s Name (Team A, B, or C) and upload it to Case Study 2 assignment. You do not need to write many words, but you do need to answer all the three Discussion Questions for the case study at the end of page 339. If you do not address those three questions in particular, points will be deducted.
Question 1 has 50 points, Question 2 has 20 points and Question 3 has 30 points. (LO 1, 2, 4) Upload your file to Case Study 2 assignment. Hint: For Question 3, please choose a hypothetical higher number, say 45% or 50%, to illustrate your analysis and conclusion. You also need to explain why. In some cases, you may use the “QM for Windows” software (rather than Excel QM) to obtain the LP diagram to support your finding. After solving your LP program, you may click on “Windows” and the select “Graphs” to get to the graph output. You may then copy and paste any graph into your word document. However, this option may not work in all cases. Please discuss why. Here is also a link that discuss the approach to solution for Chase Manhattan Bank Case Study
Please copy and paste in or attach your Excel Worksheet, which is a must to receive credits for statistical analysis. Please check the basic APA format checklist posted in the Announcement and the grading rubric for writing assignments in the syllabus before you submit this assignment. Let F denote the number of full-time employees. Some number, F1, of them will work 1 hour of overtime between 5 P.M. and 6 P.M. each day and some number, F2, of the full-time employees will work overtime between 6 P.M. and 7 P.M. There will be seven sets of part-time employees; Pj will be the number of part-time employees who begin their workday at hour j , j = 1, 2, . . . , 7, with P1 being the number of workers beginning at 9 A.M., P2 at 10 A.M., . . . , P7 at 3 P.M.
Note that because part-time employees must work a minimum of 4 hours, none can start after 3 P.M. since the entire operation ends at 7 P.M. Similarly, some number of part-time employees, Qj, leave at the end of hour j, j = 4, 5, . . . , 9. First few constraints: Constraint 1 number of personnel required for 9-10am as shown in Table Constraint 2 number of personnel required for 10-11am as shown in Table Constraint 3 number of personnel required for 11-12am as shown in Table (Half of the full-time employees go to lunch) Constraint 4 number of personnel required for 12-1pm as shown in Table (The other half of the full-time employees go to lunch.) Constraint 5 number of personnel required for 1-2pm as shown in Table (Some part time workers start to leave so have to be deducted.) Translated as 1) F + P1 >= 14 2) F + P1 + P2 >= 25 3) 0.5F + P1 + P2 + P3 >= 26 4) 0.5F + P1 + P2 + P3 + P4 >= 38 5)F + P1 + P2 + P3 + P4 + P5 – Q4 >= 55 Use a similar approach to create other constraints, input them in to Excel to get the solution. Thanks. Get Statistics homework help today