USA: +1(669)289-8683 
Sign in
Im struggling to finish this assignment. Majority of it is done, just need help answering number 2 and 3, and need an excel work sheet.
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.
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.
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.
Discussion Questions: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
CASE STUDY: CHASE MANHATTAN BANK
Case Study: Chase Manhattan Bank
BUSN603: Quantitative Analysis
December 23, 2019
1
CASE STUDY: CHASE MANHATTAN BANK
Abstract
Chase Manhattan Bank is looking to find the right balance between minimizing the costs of
having an optimal amount of part-time and full-time employees and meeting or exceeding the
hourly workforce requirements stipulated for the company. The goal of this case study is to
discover the most viable workforce schedule that would meet personnel requirements at any
given point in time in a cost-effective way.
2
CASE STUDY: CHASE MANHATTAN BANK
Defining the Problem
Chase Manhattan Bank needs to employ a cost-effective approach to properly manage the
scheduling of its employees. In order to make an efficient use of resources, the personnel
available should be a combination of part-timers and full-time employees. Part-timers are
3
CASE STUDY: CHASE MANHATTAN BANK
4
considered inexpensive since they are not eligible to all the fringe benefits; however, there are
other limitations that may prevent their employment at some departments. In order for Chase
Manhattan Bank to solve the scheduling issue, they must answer the following three questions: 1.
What is the minimum – cost schedule for the lunch break? 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? To answer these three questions, variables and
constraints must be determined. There are 16 variables and 22 constraints for this bank’s
scheduling solution. First, the following is a list of considerations for the scheduling below:
1. Part-timers are limited to a maximum of 40% of the day’s total requirements.
2. Part-timers are to work less than 8 hours daily, but at least 4 hours per day. No lunch
break is allowed.
3. Full-time employees work for 8 hours, including 1 hour for lunch per day with a 35 hour
work week.
4. Fifty percent of 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., overtime 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 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.
CASE STUDY: CHASE MANHATTAN BANK
Additionally, the following costs are relevant:
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.
Using the above information, one can assume the daily cost for a full timer at 8 hours is
$80.88, and if the employee works 1 hour of overtime then the average daily cost totals
$88.96 per day. One can also assume the daily cost for a part timer for a 4 hour day would
cost $31.28, a 5 hour day would cost $39.10, a 6 hour day would cost $46.92, and a 7 hour
day would cost $54.75 per day.
Workforce requirements are given in the following table:
Time Period Required
Number of Personnel
9:00 AM – 10:00 AM
14
10:00 AM – 11:00 AM
25
11:00 AM-Noon
26
Noon – 1:00 PM
38
1:00 – 2:00 PM
55
2:00 – 3:00 PM
60
3:00 – 4:00 PM
51
4:00 – 5:00 PM
29
5:00 – 6:00 PM
14
5
CASE STUDY: CHASE MANHATTAN BANK
6:00 – 7:00 PM
9
Developing the Model and Acquiring Input Data
The decision variables and constraints used for this case study. The top five listed are the
variables and the remaining 22 are the constraints.
F1 – Full Time 9:00 AM – 5:00 PM
F2 – Full Time 10:00 AM – 6:00 PM
F3 – Full Time 11:00 AM – 7:00 PM
OT1 – Overtime 1 hour
OT2 – Overtime 2 hours
PT4-1 – Part Time 9:00 AM – 1:00 PM
PT4-2 – Part Time 10:00 AM – 2:00 PM
PT4-3 – Part Time 11:00 AM – 3:00 PM
PT4-4 – Part Time Noon – 4:00 PM
PT4-5 – Part Time 1:00 – 5:00 PM
PT4-6 – Part Time 2:00 – 6:00 PM
PT4-7- Part Time 3:00 – 7:00 PM
PT5-1 – Part Time 9:00 AM – 2:00 PM
PT5-2 – Part Time 10:00 AM – 3:00 PM
PT5-3 – Part Time 11:00 AM – 4:00 PM
PT5-4 – Part Time Noon – 5:00 PM
PT5-6 – Part Time 1:00 – 6:00 PM
PT5-7 – Part Time 2:00 – 7:00 PM
PT6-1 – Part Time 9:00 AM – 3:00 PM
6
CASE STUDY: CHASE MANHATTAN BANK
7
PT6-2 – Part Time 10:00 AM- 4:00 PM
PT6-3 – Part Time 11:00 AM – 5:00 PM
PT6-4 – Part Time Noon – 6:00 PM
PT6-5 – Part Time 1:00 – 7:00 PM
PT7-1 – Part Time 9:00 AM – 4:00 PM
PT7-2 – Part Time 10:00 AM – 5:00 PM
PT7-3 – Part Time 11:00 AM – 6:00 PM
PT7-4 – Part Time Noon – 7:00 PM
The objective function is to minimize total daily employment cost for Chase Bank of Manhattan.
Minimize = [$10.11* (8) * (F1+F2+F3)] or $80.88 1-day cost for 1 full-time employee
+ ($8.08) * (F1+F2+F3) OR $88.96 cost 1 full-time employee with 1 overtime hour
+ ($8.08) *(2) *(F1+F2+F3) OR $97.04 cost 1 full-time employee with 2 overtime
hours
+ [($7.82) *(4) + [PT4-1 + PT4-2 + PT4-3 +PT4-5 + PT4-6 + PT4-7] or $31.28 for
part-time employee working 4 hours
+ [($7.82) *(5) + [PT5-1 + PT5-2 + PT5-3 + PT5-4 + PT5-6 + PT5-7] or $39.10 for
part-time employee working 5 hours
+ [($7.82) *(6) + [PT6-1 + PT6-2 + PT6-3 + PT6-4 + PT6-5] or $46.92 for part-time
employee working 6 hours
+ [($7.82) *(7) + [PT7-1 + PT7-2 + PT7-3 + PT7-4] or $54.74 for part-time employee
working 7 hours
CASE STUDY: CHASE MANHATTAN BANK
8
1. What is the minimum – cost schedule for the bank?
The minimum-cost schedule will show that 20 full timers will begin work at 9am and
work 8-hour shifts. 5 full timers will begin work at 10 am and work 9-hour shifts. 4 full
timers will begin work at 11 am and also work 8-hour shifts. As for the part timers, 3 part
timers will begin work at 11 am and work 5-hour shifts. 12 part timers will begin work at
12 pm and work 4-hour shifts. 3 part timers will begin work at 1 pm and work 4-hour
shifts. Lastly, 5 part timers will begin work at 2 pm and work 4-hour shifts.
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?
Yes, costs can be reduced when increasing the percent to a higher value, because that
would increase the number of part timers. Having more part timers will save money on
fringe benefits and also cost the company less money per hour on hourly wages.
Spending $7.82 per hour is much more cost effective than spending $10.11 per hour.
CASE STUDY: CHASE MANHATTAN BANK
References:
9
CASE STUDY: CHASE MANHATTAN BANK
Render, B, Stair R., Hanna, M., and Hale, T. (2014). Quantitative Analysis for Management
Edition, (12th ed.). Upper Saddle River, New Jersey: Pearson Prentice Hall.
10
