Linear Programming

In order to solve, let

F = # of full-time tellers without OT

F1 = # of full-time tellers with 1 hour OT from 5m -6pm
F2 = # of full-time tellers with 2 hours OT 5pm -7pm

P1 = PT tellers who work 4 hrs from 9am to 1pm

P2 = PT tellers who work 5 hrs from 9am to 2pm
P3 = PT tellers who work 6 hrs from 9am to 3pm
P4 = PT tellers who work 7 hrs from 9am to 4pm

P5 = PT tellers who work 4 hrs from 10am to 2pm

P6 = PT tellers who work 5 hrs from 10am to 3pm
P7 = PT tellers who work 6 hrs from 10am to 4pm
P8 = PT tellers who work 7 hrs from 10am to 5pm

P9 = PT tellers who work 4 hrs from 11am to 3pm

P10 = PT tellers who work 5 hrs from 11am to 4pm
P11 = PT tellers who work 6 hrs from 11am to 5pm
P12 = PT tellers who work 7 hrs from 11am to 6pm

P13 = PT tellers who work 4 hrs from 12pm to 4pm

P14 = PT tellers who work 5 hrs from 12pm to 5pm
P15 = PT tellers who work 6 hrs from 12pm to 6pm
P16 = PT tellers who work 7 hrs from 12pm to 7pm

P17 = PT tellers who work 4 hrs from 1pm to 5pm

P18 = PT tellers who work 5 hrs from 1pm to 6pm
P19 = PT tellers who work 6 hrs from 1pm to 7pm

P20 = PT tellers who work 4 hrs from 2pm to 6pm

P21 = PT tellers who work 5 hrs from 2pm to 7pm

P22 = PT teller who work 4 hrs from 3pm to 7pm

Average cost per FT personnel = $10.11

Average cost per overtime personnel hour for FT = $8.08
Average cost per PT personnel = $7.82

Objective function:
Minimize = ($10.11)(7)F $10.11 is the cost per hour for FT, 7 is 1 day of work minus
+[8.08]F1 1 hour overtime
+[(8.08)(2)]F2 2 hour overtime
+[(7.82)(4)+[P1+P5+P9+P13+P17+P20+P22] $7.82 is the cost/hr for PT, 4=hrs/shift
+[(7.82)(5)+[P2+P6+P10+P14+P18+P21]
+[(7.82)(6)+[P3+P7+P11+P15+P19]
+[(7.82)(7)+[P4+P8+P12+P16]
Constraints
Workforce Requirements
9-10am = (F) + P1+P2+P3+P4 >= 14

10-11 am = (F) + P1+P2+P3+P4+P5+P6+P7+P8 >=25

11-12 pm = 0.5(F) + P1+P2+P3+P4+P5+P6+P7+P8+P

0.59+P +P11+P
reflects
10 lunch
12
>=26
time

12-1pm = 0.5(F) + P1+P2+P3+P4+P5+P6+P7+P8+P9+P10+P11+P12+P13+P14+P15+P16 >=38

1-2 pm = (F) + P2+P3+P4+P5+P6+P7+P8+P9+P10+P11+P12+P13+P14+P15+P16+P17+P18+P19 >=55

2-3pm = (F) + P3+P4+P6+P7+P8+P9+P10+P11+P12+P13+P14+P15+P16+P17+P18+P19+P20+P21 >=60

3-4pm = (F) + P4+P7+P8+P10+P11+P12+P13+P14+P15+P16+P17+P18+P19+P20+P21+P22 >=51

4-5pm = (F) + P8+P11+P12+P13+P14+P15+P16+P17+P18+P19+P20+P21+P22 >= 29

5-6pm = (F1+F2) +P12+P15+P16+P17+P20+P21+P22 >= 14

6-7pm = (F1+F2) +P16+P19+P21+P22 >= 9

For factor #1 – by corporate policy, part-time personnel hours are limited to a max of 40% of the day’s total requirement.

4(P1+P5+P9+P13+P17+P20+P22) + 5(P2+P6+P10+P14+P18+P21) + 6(P3+P7+P11+P15+P19) + 7(P4+P8+P12+P16)

F1+3* F2 ≤ F

The number of full-time employees doing overtime should be less than or equal to number of full time employees.
F2 is multiplied by 3 because each employee can do only 5 hours OT in a week so each employee can do only 2 days of 2 hou

Excel Model
F F1 F2 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11
30 1 8 0 0 0 0 0 0 0 0 9 2 0

9-10am 1 1 1 1 1
10-11 am 1 1 1 1 1 1 1 1 1
11-12 pm 0.5 1 1 1 1 1 1 1 1 1 1 1
12-1pm 0.5 1 1 1 1 1 1 1 1 1 1 1
1-2 pm 1 1 1 1 1 1 1 1 1 1 1
2-3pm 1 1 1 1 1 1 1 1 1
3-4pm 1 1 1 1 1 1
4-5pm 1 1 1
5-6pm 1 1
6-7pm 1

Additional constraints

25 ≤ 30
123 ≤ 128

Objective Function

Minimize total Cost = $3,222.32

1. What is the minimum-cost schedule for the bank?

Minimum cost is $ 3222.32. Total 16 full time employees do 2-hours of OT for 2 days and 8 employees do OT
for 2-hours once a week . 1 employee does OT for 1 hour for 5 days a week.

2. What are the limitations of the model used to answer

question 1?
Limitations:
a) it does not allow different loading for different days in a week.
b) it does not allow flexible timings for full time employees. If say full-time employees are allowed to work from 11-7pm then
the overtime cost could be reduced.

3. Costs might be reduced by relaxing the constraint that no more than 40% of the day’s requirement be met by parttimers.
Would changing the 40% to a higher value significantly
reduce costs?

the cost would not reduce . This is because the optimal cost solution requires less number of full timers than
40 %. The constraint of 40 % has slack and therefore increasing this limit will not reduce cost.
FT, 7 is 1 day of work minus lunch hour

ay’s total requirement.

<= 40% (321)

321=number of personnel required

time employees.
can do only 2 days of 2 hours OT and so we require 3 sets of people with 2 hours OT per week

P12 P13 P14 P15 P16 P17 P18 P19 P20 P21 P22
0 14 0 0 0 0 0 0 4 1 0
Total Constraint
30 ≥ 14
30 ≥ 25
1 26 ≥ 26
1 1 1 1 1 40 ≥ 38
1 1 1 1 1 1 1 1 55 ≥ 55
1 1 1 1 1 1 1 1 1 1 60 ≥ 60
1 1 1 1 1 1 1 1 1 1 1 51 ≥ 51
1 1 1 1 1 1 1 1 1 1 35 ≥ 29
1 1 1 1 1 1 1 1 14 ≥ 14
1 1 1 1 9 ≥ 9