1. What is the minimum-cost schedule for the bank? 2. Costs might be reduced by relaxing the constraint that no more than 40% of the day's requirement be met by part-timers. Would changing the 40% to 50% higher value significantly reduce costs? Chase Manhattan Case Study 1. By corporate policy, part-time personnel hours are limited to a maximum of 40% of the day's total requirement. 2. Full-time employees work for 8 hours (1 hour for lunch included) per day. Thus, a fulltimer's productive time is 35 hours per week. 3. Part-timers work for at least 4 hours per day but less than 8 hours and are not allowed a lunch break. 4. 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. 5. The shift starts at 9 A.M. and ends at 7 P.M. (i.e., overtime is limited to 2 hours). Any work left over at 7 P.M. is considered holdover for the next day. 6. A full-time employee is not allowed to work more than 5 hours overtime per week. He or she is paid at the normal rate for overtime hoursnot at one-and-a-half times the normal rate applicable to hours in excess of 40 per week. Fringe benefits are not applied to overtime hours. In addition, the following costs are pertinent: 1. The average cost per full-time personnel hour (fringe benefits included) is $10.11. 2. The average cost per overtime personnel hour for full-timers (straight rate excluding fringe benefits) is $8.08. 3. The average cost per part-time personnel hour is $7.82. Chase Manhattan Case Study Schedule Time 9-10 10-11 11-12 12-1 1-2 2-3 3-4 4-5 5-6 6-7 Full Time 8 Full Time HRS OT 1 1 0.5 0.5 1 1 1 1 1 Unit Cost per Shif # of Staff Working 10.11 PT 1 1 1 1 1 1 8 Hourly Rate PT 8.08 1 1 1 1 4 7.82 PT 1 1 1 1 4 7.82 PT 1 1 1 1 4 7.82 PT 1 1 1 1 4 7.82 ### 4 7.82 80.88 8.08 31.28 31.28 31.28 31.28 31.28 14 9 0 11 9 11 26 LHS SIGN 14 25 27 38 71 60 51 40 14 9 >= >= >= >= >= >= >= >= >= >= 349 >= RHS 14 25 26 38 55 60 51 29 14 9 321 Total Cost of Labor Per Day $ 2,988.00