Essay on Optimizing Cost Schedules in Chase Manhattan Bank Using Linear Programming

Introduction

Chase Manhattan Bank operates just like other banks. It has measures which make it economical. In the case study carried in 2012 at Chase Manhattan Bank, linear programming model was used together with several variables to count for the possible staffing activities in a whole day (Hunter, 2017). This work will evaluate minimum cost schedule of the bank, limitations of a linear programming model which was used in the cases study conducted in the Chase Manhattan Bank if the change in the 40% of the part-time workers will have an effect on the cost, reduce the cost.

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Minimum cost at Chase Manhattan Bank

Chase Manhattan Bank employs an aspect of using 40% of part-time workers of the total workers, which contributes to the minimum price of $3,359.27 daily (Runfola, 2015). In the minimum cost schedule, part-time workers are distributed in shifts in the whole day. It should be noted that in Chase Manhattan Bank, there are 23 part-time employees of whom they work in shifts up to the end of the day. In the allocation of both full-time workers and part-time employees, at first, for the effectiveness of the work in the company, full-time employees are considered first to kick off the work of the day. Therefore from 9 am, 20 full-time workers are obligated to start the job and continue for 8 hours shift. Five full-time workers the chip in after an hour that is at 10 am and work for a change in 9 hours. At 11 am, four full-time workers start their job and work for 8 hours. Basing on the side of part-time workers, 3 part-time workers begins at 11AM and works for 5 hour shift, 21 kick off at 12 noontime and work for 4 hours shifts, 3 pick up at 1 PM and run for 4 hour shifts and lastly 5 part-time employees start their work at 2 PM and work for 4 hour shifts.

Limitation of the linear programming model used in the case study

Part-time workers should not exceed 40% of the total employees in the bank (Hunter, 2017). Including a one-hour lunch break, full-time workers should work for an 8-hour shift, which then sums up to 35 working hours per week. Full-time workers can't work 5 hours overtime in a week; at least 4 hours of overtime can be preferred. On the side of pat time workers, they should work for 7 hours or less and lunch hour should be considered most. In the case study, half of the full-time workers go for lunch at 11-12AM and the rest at 12- 1 PM.

Effect of increasing 4% of the part-time workers to the minimum cost

When the bank rises, the number of part-time workers above 40%, the significant results will be that there will the minimum cost schedule will decrease. It should be noted that full-time workers cost more than part-time workers; hence, the increase in part-time workers will reduce the minimum cost schedule. For instance, if the part-time employees are increased to 50%, the cost-saving ($3,359.27minus $3,125.85) will amount to $233.42.

References

Hunter, G.S. (2017). The Manhattan Company: Managing Cooperation in New York a Multi-Unit,1799-1842. Routledge. Retrieved from https://content.taylorfrancis.com/books/download?dac=C2017-0-44441-5&isbn=9781351677011&format=googlePreviewPdf

Runfola, A., Perna, A., Baraldi, E., &Gregori G.L. (2017). The use of qualitative case studies in top business and management journals: a qualitative analysis of recent patterns. European Management Journals, 35(10, 116-127. Retrieved from https://www.sciencedirect.com/science/article/pii/S0263237316300317