Problem

Linear programming module 1) Develop a grid in Excel with the time periods ( 9:00 to 10:00, 10:00 to 11.00, etc.) down the left side of the grid and all possible full-time and parttime shifts that can be worked across the top. put an "X" in the grid to indicate the times that each of the possible shifts work. all full-time employees starts at 9:00. for the full-tme employees, half of the employees take lunch from 11"00 A.M to noon and the remainder of them takes lunch from noon to 1:00 P.M. ( hint: there 3 possible full-time shifts and 22 possible part time shifts.) continued.... Text book (quantitative analysis for management ) render/stair/hanna 9th edidtion page 330... Case Study: 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 parttimers 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: 1.by corporate policy, part-time personnel hours are limited to a maximum of 40% of the day's total requirement. 2. full-time employees work for 8 hours ( 1 hour for lunch included) per day. thus, a fulltimer's productive time is 35 hours per week. 3. part-timers work for at least 4 hours per day but less than 8 hours and are not allowed a lunch break. 4. 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 5. the shift starts at 9 A.M. and ends at 7 P.M. (i.e..over time is limited to 2 hours) . any work left over at 7 P.M. is considered holdover for the next day. 6. a full-time employee is not allowed to work more than 5 hours overitme 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 Table 8.9. 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. Table 8.9: time period number of personnel 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 Problems to be solved... - 1) Develop a grid in Excel with the time periods ( 9:00 to 10:00, 10:00 to 11.00, etc.) down the left side of the grid and all possible full-time and part-time shifts that can be worked across the top. put an "X" in the grid to indicate the times that each of the possible shifts work. all full-time employees starts at 9:00. for the full-tme employees, half of the employees take lunch from 11"00 A.M to noon and the remainder of them takes lunch from noon to 1:00 P.M. ( hint: there 3 possible full-time shifts and 22 possible part time shifts.) 2) using the grid from (1), formulate the 10 constraints corresponding to the time periods. ..if that shift works in a given time period, make the coefficient equal to 1.0 ..if the shift doesn't work in a given time period, make the coefficient equal to 0.0 ..for the lunch periods of full-time employees, make the coefficients equal 0.5 ..the number of employees needed for each time period is given in the problem in the case. 3) the final (11th) constraint states that the total number of hours worked by the part-time employees is limited to 40 % of the tatal hours workd by both full-time and part-time employees. as stated in the problem, eac full-time employee works 7 hours out of an 8 hour day. 4) disregard the 6th factor(constraint) listed in the case. 5) the coefficients in the objective function is the hourly wage multiplied by hours worked. assume that full-time employees are paid for lunch ( they are paid for 8 hours but only work 7 hours). 6) using the linear programming module in QM software, input the problems (25 decision variables and 11 constraints) and solve the problem. 7) copy the formulation from the linear programming module and paste into the integer programming module. verify that all of the constraints copy over correctly! solve the problem. if your answer for the integer program has no full-time employees, reverse the sign in the 11th constraint. Requirements: ..Grid from (1) .. solution output from linear programming module (6) ..(Note:File/Print/Results only) .. solution output from integer programming module (7)..(Note:File/Print/Results only) .. complete the form on the next page summarizing your answers to the linear program

solution and the integer program solution. Note: if the solutions do not print, go to File/Print Setup/Layout and uncheck color. Case Study 2 Analysis Summary Employee Type Shift Worked Linear Program Solution Integer Program solution Full time 9:00am to 5:00pm Full time 9:00am to 6:00pm Full time 9:00am to 7:00pm part time 9:00am to 1:00pm part time 9:00am to 2:00pm part time 9:00am to 3:00pm part time 9:00am to 4:00pm part time 10:00am to 2:00pm part time 10:00am to 3:00pm part time 10:00am to 4:00pm part time 10:00am to 5:00pm part time 11:00am to 3:00pm part time 11:00am to 4:00pm part time 11:00am to 5:00pm part time 11:00am to 6:00pm part time Noon to 4:00 pm part time Noon to 5:00 pm part time Noon to 6:00 pm part time Noon to 7:00 pm part time 1:00pm to 5:00pm part time 1:00pm to 6:00pm part time 1:00pm to 7:00pm part time 2:00pm to 6:00pm part time 2:00pm to 7:00pm part time 3:00pm to 7:00pm Total Cost