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 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 fulltime 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.

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

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

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9-10 AM. 4-5 PM. Personnel Hours Hour Required Workload