This is a team assignment. The rubric used for grading is attached.
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:
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
NUMBER OF PERSONNELTIME PERIOD REQUIRED9–10 A.M.1410–112511–122612–1 P.M.381–2552–3603–4514-5295-6146-79
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 questions above. 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. Upload your file to this Case Study 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 a link that discuss the approach to solution for Chase Manhattan Bank Case Study
Please copy, paste and explain your results in your paper, AND 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.