Week 7 Case StudyTeamC

Running head: CHASE MANHATTAN BANK CASE STUDY 1 Chase Manhattan Bank Case Study Moatsim Al Khatib, Donna Cook, Rian Ellis, Jacob Ernst, Aubrey Ford, Jedsen Nunes, & Eva Thomason American Public University BUSN-603
CHASE MANHATTAN BANK CASE STUDY Introduction Chase Manhattan Bank is attempting to find an deficient use of resource determine proper staffing through the day. However, to determine the optimal solution with numerous variables, linear programming is key. The use of linear programming will help solve this complex task and will provide an optimal solution of balance the amount of full-time and part- time employees while maintain the lowest cost possible while still maintain appropriate staffing due to the high traffic time of days. Using linear programming we will determine the minimum- cost schedule for the bank, explain the limitations of the model and show if relaxing the constraint would significantly reduce cost. What is the minimum-cost schedule for the bank? Below are the variables used to determine the minimum-cost schedule. F= FT w/o OT from 9am to 5pm F1 = FT w/ 1 hr OT from 10am to 6pm F2= FT w/ 2 hrs OT form 11am to 7pm O1= FT w/ 1 hour OT from 9am to 6pm O2= FT w/ 2 hours OT P1= PT 4 hrs from 9am to 1pm P2= PT 5hrs from 9am to 2pm P3= PT 6hrs from 9am to 3pm P4= PT 7hrs from 9am to 4pm P5= PT 4hrs from 10am to 2pm P6= PT 5hrs from 10am to 3pm P7= PT 6hrs from 10am to 4pm P8= PT 7hrs from 10 am to 5pm P9= PT 4hrs from 11am to 3pm P10= PT 5hrs from 11am to 4pm P11= PT 6hrs from 11am to 5pm P12= PT 7 hrs from 11am to 6pm P13= PT 4 hrs from 12pm to 4pm P14= PT 5hrs from 12pm to 5pm P15= PT 6hrs from 12pm to 6pm P16= PT 7hrs from 12pm to 7pm P17= PT 4hrs from 1pm to 5pm P18= PT 5hrs from 1pm to 6pm 2
CHASE MANHATTAN BANK CASE STUDY P19= PT 6 hrs from 1pm to 7 pm P20= PT 4hrs from 2pm to 6pm P21= PT 5hrs from 2pm to 7pm P22= PT 4hrs from 3pm to 7pm Based on these 27 variables, the optimal schedule with minimum cost including the following; 17 F, two F1, four F2, five O2, nine P9, three P10, 12 P13, five P17 and three P20 at the cost of $3,359.05. What are the limitations of the model used to answer question 1? 1. Part-time employees are not entitled to all the fringe benefits, however, there may be limit the extent to which part-time people can be hired in a given department. 2. By corporate policy, part-time personnel hours are limited to a maximum of 40% of the day's total requirement. 3. Full-time employees work for 8 hours (1 hour for lunch included) per day. A full-time employee's productive time is 35 hours per week. 4. Part-timers work for at least 4 hours per day but less than 8 hours and are not allowed a lunch break. 5. 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. 6. The shift starts at 9 A.M. and ends at 7 P.M. Any work left over at 7 P.M. is considered holdover for the next day. 7. A full-time employee is not allowed to work more than 2 hours of overtime in a day and limited to 5 hours overtime per week. The normal rate for overtime hours—not at one-and-a-half times the normal rate is applicable to hours in excess of 40 per week. Fringe benefits are not applied to overtime hours. 3
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