NAME: JOANNA MARIE D.

TORRES
MENG 500

CASE STUDY: CHASE MANHATTAN BANK

GIVEN :
SALARY RATE:
PER HOUR
FULL-TIMER RATE PER HOUR = $10.11
FULL-TIMER OT RATE PER HOUR = $8.08
PART-TIMER RATE PER HOUR = $7.82

FROM TABLE 8.9

WORK FORCE REQUIREMENT
TIME PERIOD NUMBER OF PERSONNEL
REQUIRED
9:00 AM - 10:00 AM 14
10:00 AM - 11:00 AM 25
11:00 AM - 12:00 PM 26
12:00 PM - 1:00 PM 38
1:00 PM - 2:00 PM 55
2:00 PM - 3:00 PM 60
3:00 PM - 4:00 PM 51
4:00 PM - 5:00 PM 29
5:00 PM - 6:00 PM 14
6:00 PM - 7:00 PM 9

LET:
FULL -TIMERS LIMITATIONS: 8 HRS PER DAY (W/ 1 HR LUNCH BREAK), PRODUCTIVE TIME IS 35 HRS PER WEEK
PRODUCTIVE HOURS WILL BE 7 HRS PER DAY FOR FULL TIMERS
FT1 = FULL-TIMER 9:00 am 5:00 pm 7 HRS
FT2 = FULL-TIMER 10:00 am 6:00 pm 7 HRS
FT3 = FULL-TIMER 11:00 am 7:00 pm 7 HRS

FULL -TIMERS W/ OT LIMITATIONS: MAX. OF 2 HOURS PER DAY BUT NOT MORE THAN 5 HRS PER WEEK
IN THIS CASE, WE WILL LIMIT THE OVERTIME FOR 1 HR ONLY TO MAINTAIN CONSISTENCY AND THE LINEARITY OF THE
EQUATIONS.
F1 = FULL-TIMER WITH OT 9:00 am 6:00 pm 8 HRS
F2 = FULL-TIMER WITH OT 10:00 am 7:00 pm 8 HRS

PART-TIMERS LIMITATIONS: MIN OF 4 HRS BUT NOT MORE THAN 8 HRS PER DAY
P1 = PART-TIMER 9:00 am 1:00 pm 4 HRS
P2 = PART-TIMER 9:00 am 2:00 pm 5 HRS
P3 = PART-TIMER 9:00 am 3:00 pm 6 HRS
P4 = PART-TIMER 9:00 am 4:00 pm 7 HRS

P5 = PART-TIMER 10:00 am 2:00 pm 4 HRS

P6 = PART-TIMER 10:00 am 3:00 pm 5 HRS
P7 = PART-TIMER 10:00 am 4:00 pm 6 HRS
P8 = PART-TIMER 10:00 am 5:00 pm 7 HRS

P9 = PART-TIMER 11:00 am 3:00 pm 4 HRS

P10 = PART-TIMER 11:00 am 4:00 pm 5 HRS
P11 = PART-TIMER 11:00 am 5:00 pm 6 HRS
P12 = PART-TIMER 11:00 am 6:00 pm 7 HRS

P13 = PART-TIMER 12:00 pm 4:00 pm 4 HRS

P14 = PART-TIMER 12:00 pm 5:00 pm 5 HRS
P15 = PART-TIMER 12:00 pm 6:00 pm 6 HRS
P16 = PART-TIMER 12:00 pm 7:00 pm 7 HRS

P17 = PART-TIMER 1:00 pm 5:00 pm 4 HRS

P18 = PART-TIMER 1:00 pm 6:00 pm 5 HRS
P19 = PART-TIMER 1:00 pm 7:00 pm 6 HRS

P20 = PART-TIMER 2:00 pm 6:00 pm 4 HRS

P21 = PART-TIMER 2:00 pm 7:00 pm 5 HRS

P22 = PART-TIMER 3:00 pm 7:00 pm 4 HRS

SOLUTION:
MINIMUM = 10.11(7)FT + (10.11*7+ 8.08*1)(F1) + (10.11*7+ 8.08*2)(F2) + 4*7.82 (P1 + P5 +P9 + P13 + P17+ P20 + P22) + 5*7.82 (P2 + P6 +P10 + P14 + P21) + 6*7.82 (P3 + P7 + P11 + P15 + P19) + 7*7.82 (P4 + P8 + P12 + P16 )
FT1 FT2 FT3 F1 F2 P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14 P15 P16 P17 P18 P19 P20 P21 P22
EQ. 1 9:00 AM - 10:00 AM FT + + + F1 + + P1 + P2 + P3 + P4 ≥ 14
EQ. 2 10:00 AM - 11:00 AM FT + FT + + F1 + F2 + P1 + P2 + P3 + P4 + P5 + P6 + P7 + P8 ≥ 25
EQ. 3 11:00 AM - 12:00 PM 0.5FT + 0.5FT + 0.5FT + 0.5F1 + 0.5F2 + P1 + P2 + P3 + P4 + P5 + P6 + P7 + P8 + P9 + P10 + P11 + P12 ≥ 26
EQ. 4 12:00 PM - 1:00 PM 0.5FT + 0.5FT + 0.5FT + 0.5F1 + 0.5F2 + P1 + P2 + P3 + P4 + P5 + P6 + P7 + P8 + P9 + P10 + P11 + P12 + P13 + P14+ + P15 P16 ≥ 38
EQ. 5 1:00 PM - 2:00 PM FT + FT + FT + F1 + F2 + P2 + P3 + P4 + P5 + P6 + P7 + P8 + P9 + P10 + P11 + P12 + P13 + P14+ + P15 P16 + P17 + P18 + P19 ≥ 55
EQ. 6 2:00 PM - 3:00 PM FT + FT + FT + F1 + F2 + P3 + P4 + P6 + P7 + P8 + P9 + P10 + P11 + P12 + P13 + P14+ + P15 P16 + P17 + P18 + P19 + P20 + P21 ≥ 60
EQ. 7 3:00 PM - 4:00 PM FT + FT + FT + F1 + F2 + P4 + P7 + P8 + P10 + P11 + P12 + P13 + P14+ + P15 P16 + P17 + P18 + P19 + P20 + P21 + P22 ≥ 51
EQ. 8 4:00 PM - 5:00 PM FT + FT + FT + F1 + F2 + P8 + P11 + P12 + P14+ + P15 P16 + P17 + P18 + P19 + P20 + P21 + P22 ≥ 29
EQ. 9 5:00 PM - 6:00 PM FT FT F1 + F2 + P12 + + P15 P16 + P18 + P19 + P20 + P21 + P22 ≥ 14
EQ. 10 6:00 PM - 7:00 PM FT + F2 + P16 + P19 + P21 + P22 ≥ 9
(4)P1 + (5)P2 + (6)P3 + (7)P4 + (4)P5 + (5)P6 + (6)P7 + (7)P8 + (4)P9 + (5)P10 + (6)P11 + (7)P12 + (4)P13 + (5)P14 + (6)P15 + (7)P16 + (4)P17 + (5)P18 + (6)P19 + (4)P20 + (5)P21 + (4)P22 ≤ 128.40 EQ. 11
FT1 , FT2 , FT3 , F1 , F2 , P1 , P2 , P3 , P4 , P5 , P6 , P7 , P8 , P9 , P10 , P11 , P12 , P13 , P14 , P15 , P16 , P17 , P18 , P19 , P20 , P21 , P22 ≥ 0 EQ. 12
NUMBER OF VARIABLES: 27 TO EQ. 38
NUMBER OF CONSTRAINS: 38

Table 1: Results From QM Windows

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

By using QM Windows, the minimum cost schedule for Chase Manhattan Bank is $3,070.35.

FULL-TIMERS PART- TIMERS RESULTS

TIME PERIOD
FT1 FT3 F2 P9 P10 P13 P20 PART TIMERS FULL TIMERS TOTAL REQUIRED
9:00 AM - 10:00 AM 19.58 0 0 0 0 0 0 0 19.58 19.58 ≥ 14
10:00 AM - 11:00 AM 19.58 0 5.42 0 0 0 0 0 25 25 ≥ 25
11:00 AM - 12:00 PM 9.79 1.79 2.71 9 2.71 0 0 11.71 14.29 26 ≥ 26
12:00 PM - 1:00 PM 9.79 1.79 2.71 9 2.71 14.71 0 26.42 14.29 40.71 ≥ 38
1:00 PM - 2:00 PM 19.58 3.58 5.42 9 2.71 14.71 0 26.42 28.58 55 ≥ 55
2:00 PM - 3:00 PM 19.58 3.58 5.42 9 2.71 14.71 5 31.42 28.58 60 ≥ 60
3:00 PM - 4:00 PM 19.58 3.58 5.42 0 2.71 14.71 5 22.42 28.58 51 ≥ 51
4:00 PM - 5:00 PM 19.58 3.58 5.42 0 0 0 5 5 28.58 33.58 ≥ 29
5:00 PM - 6:00 PM 0 3.58 5.42 0 0 0 5 5 9 14 ≥ 14
6:00 PM - 7:00 PM 0 3.58 5.42 0 0 0 0 0 9 9 ≥ 9
TOTAL 128.39 205.48 333.87 321

Table 2: Results from QM windows

Checking for Constrains:
Part-time personnel hours are limited to a maximum of 40% of the day’s total requirement.
Part-timers 128.39
= x 100% = 38% ≤ 40% OK
Total Req. 333.87

2. What are the limitations of the model used to answer question 1?

The model used to answer Question 1 has the following limitations:

1. Full-time personnel without overtime hours (FT1, FT2, and FT3) will have a productive time of 7 hours per day.
2. Full-time personnel with overtime hours (F1 and F2) are limited to 1 hour of overtime per day to ensure consistency and maintain the linearity of the equations.
3. Part-timer personnel (P1 to P22) will have a minimum of 4 hours per day and a maximum of 7 hours per day and are not allowed a lunch break.
4. Total hours of part-timer personnel are limited to a maximum of 40% of the day’s total requirement.
5. The shift starts at 9 A.M. and ends at 7 P.M.
6. 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.
These constraints are in place to align with the model's requirements and maintain its structural integrity.
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?

Yes, increasing the percentage of the constraints significantly reduces the cost. For example, using QM Windows with constraints set at 60%, the minimum cost schedule for
Chase Manhattan Bank is $2,802.63. When the constraints are increased to 80%, the minimum cost decreases further to $2,640.95.

At 60%:
At 80%: