Posted: September 13th, 2017
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Case Study: Chase Manhattan Bank
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. Figure 8.2 shows a typical workload curve and corresponding personnel requirements at different hours of the day.
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:
FIGURE 8.2
In addition, the following costs are pertinent:
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.
Discussion Questions
Source: Adapted from Shyam L. Moondra. “An L. P. Model for Work Force Scheduling for Banks,” Journal of Bank Research (Winter 1976): 299-301.
TABLE 8.9 Workforce Requirements
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
(Render 339)
Render, Barry, Ralph Stair, Michael Hanna. Quantitative Analysis for Management, 11th Edition. Pearson Learning Solutions, 02/2011. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.
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