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